If US regulators could turn back time

Author: Edward Price | Published: 21 Mar 2016

Since the financial crisis, US rulemakers have struggled to regulate securitisation. But there are lessons to be learned, and they might help prevent the next disaster

It pays to look back – to a degree. In the world of regulatory oversight, rulemakers are often accused of being better at preventing the last crisis than they are the next.

But the imperative to tackle future crises remains. In the US, high-frequency trading, exchange-traded funds (ETF) and dark pools are already creeping up the Securities and Exchange Commission's (SEC) agenda, even before sizable portions of Dodd-Frank have been implemented.

So as the dust starts to settle on a key aspect of post-crisis reform – securitisation – IFLR decided to revisit the past and ask some questions. Where have rules succeeded? What could have been done differently? And, to borrow the words of Nobel prize-winning economist Paul Krugman, what have we learned since 2008?

The 2010...