Protecting Financial Markets: Lessons from the Subprime Mortgage Meltdown
The most up-to-date version of this piece can be found in the Duke Law Scholarship
Why did the recent subprime mortgage meltdown undermine financial market stability notwithstanding the protections provided by market norms and financial regulation? This article attempts to answer that question by identifying anomalies and obvious protections that failed to work, and then by examining hypotheses that might explain the anomalies and failures. The resulting explanations provide critical insights into protecting financial markets.
Date of Authorship for this Version
Schwarcz, Steven L., "Protecting Financial Markets: Lessons from the Subprime Mortgage Meltdown" (2008). Duke Law School Faculty Scholarship Series. Paper 131.