Purpose - The purpose of this paper is to present an overview of the flash crash, and explain why and how it happened. Design/methodology/approach - The author summarizes several studies suggesting various perspectives on the flash crash and its causes. Furthermore, the author highlights...

We analyze how two types of recently used prudential policies affected the supply of credit in the United States. First, we test whether the U.S. bank stress tests had any impact on the supply of mortgage credit. We find that the first Comprehensive Capital Analysis and Review (CCAR) stress test...