In this article, I review some of the main findings described in Regulating Wall Street: The Dodd–Frank Act and the New Architecture of Global Finance, which I co-edited.1 As such, this article is based on the work of 40 or so faculty members and PhD students at New York University’s Stern...

The 2008 financial crisis revealed some basic flaws in our financial system and in our financial regulatory framework. Specifically, the crisis demonstrated that the failure or the material financial distress of some of our largest, most complex firms could pose a threat to the financial...

I would like to take the opportunity to discuss one of those challenging issues—the orderly resolution of systemically important financial institutions (SIFIs). The Dodd–Frank Wall Street Reform and Consumer Protection Act provided important new authority to the Federal Deposit Insurance...

This paper examines the implications that alternative regulatory structures may have for resolving failed banking institutions. We place our emphasis on the European Union (EU), which is both economically and financially large and has several features relating to cross-border banking in the form...

This paper examines the negative externalities that may occur when a large bank fails, describes the nature of those externalities, and explores whether they may be greater in a case involving a large cross-border banking organization. The analysis suggests that the chief negative externalities...

Credit constraints that link a private agent’s debt to market-determined prices embody a credit externality that drives a wedge between competitive and constrained socially optimal equilibria, inducing private agents to overborrow. The externality arises because agents fail to internalize the...