« Debt Collection Complaints and Regulation: Last Chance to Comment on ANPR | Main | Discharge, Yes...But, How Much? »

The Politics of Financial Regulation and the Regulation of Financial Politics

posted by Adam Levitin

I have an new article, The Politics of Financial Regulation and the Regulation of Financial Politics, forthcoming in the Harvard Law ReviewThe article is a multi-book review essay that serves as a launching pad for a discussion about the role of politics in financial regulation. The basic point is that the real issue in financial regulation is one of neutralizing or harnessing politics. Without addressing the political problem in financial regulation, regulatory reforms will be incomplete and unsustainable.

Comments

I would imagine the following statement (taken from your post with one word redacted) - "The basic point is that the real issue in _____ regulation is one of neutralizing or harnessing politics. Without addressing the political problem in _____ regulation, regulatory reforms will be incomplete and unsustainable." - is universally true. It is almost certainly the case that, once you eliminate politics from lawmaking, the law on the books would tend to be much less likely to change. It is hard to imagine, however, that a separation of lawmaking from politics is consistent with any school of U.S. Constitutional interpretation.

mt-

First, nice to see you've got a blog.

Second, I don't know how much sense it makes to debate the substance without the benefit of the article's context. Nonetheless...

Third, I am not advocating a separation of lawmaking from politics. One option, which no one in the US really seems to want, is more political control over financial regulation. We could take it back to the ballot box, like it was in the 19th century, but no one wants to see that.

Instead, I am suggesting that if we think there is such a thing as neutral policymaking, then we need to try to enable it, and what I do in the article is explore some of the options: leaning away from politics (CFPB design doubles down on agency independence) or leaning in to politics by trying to harness rent-seeking impulses to neutralize politics (Glass-Steagal accomplished for a while, and I have some other historical and recent examples).

The comments to this entry are closed.

Contributors

Current Guests

Follow Us On Twitter

Like Us on Facebook

  • Like Us on Facebook

    By "Liking" us on Facebook, you will receive excerpts of our posts in your Facebook news feed. (If you change your mind, you can undo it later.) Note that this is different than "Liking" our Facebook page, although a "Like" in either place will get you Credit Slips post on your Facebook news feed.

News Feed

Categories

Bankr-L

  • As a public service, the University of Illinois College of Law operates Bankr-L, an e-mail list on which bankruptcy professionals can exchange information. Bankr-L is administered by one of the Credit Slips bloggers, Professor Robert M. Lawless of the University of Illinois. Although Bankr-L is a free service, membership is limited only to persons with a professional connection to the bankruptcy field (e.g., lawyer, accountant, academic, judge). To request a subscription on Bankr-L, click here to visit the page for the list and then click on the link for "Subscribe." After completing the information there, please also send an e-mail to Professor Lawless (rlawless@illinois.edu) with a short description of your professional connection to bankruptcy. A link to a URL with a professional bio or other identifying information would be great.

OTHER STUFF