Macroprudential Regulation: a Sustainable Approach to Regulating Financial Markets

Following the financial crisis that began in 2007, Congress and regulators acted to address perceived gaps in the regulation of corporate boards, including boards of large, complex finan-cial institutions. With the goal of improving the stability of global financial markets, regulators have adopted reforms intended to enhance the role of boards, particularly those of financial institutions, as gatekeepers and systemic risk monitors. Arguing that the culture of financial institutions may lead board to govern these businesses less effectively than boards in non-financial sectors, this Article challenges assumptions that conventional regulatory or cor-porate governance mechanisms will conclusively address systemic risk concerns in the financial sector.

The full text of this Article is available to download as a PDF.