LAW 7360 - International Financial Regulation

Fall. 2 credits. S/U grades only.

Recommended prerequisite or corequisite: LAW 6131. Some sessions of this course will be conducted by video conference.

S. Emmenegger, U. Zulauf.

This seminar provides an introduction to the international regulation of financial markets. No prior familiarity with financial regulation is required. The course will focus on two issues: (1) Why should financial markets be controlled? These sessions will discuss the need for financial regulation. What is so special about banks and other financial intermediaries that calls for state intervention? How should we regulate financial innovation? (2) How can financial markets be controlled, and how are the rules enforced, and by whom? These sessions will discuss the issue that financial actors operate on a global scale whereas regulation and supervision is carried out on a national level. How then can these global players be prevented from using the loopholes of nationally fragmented regulation and supervision? The focus will be on international standard setting, cooperation, extraterritorial regulation and cross-border enforcement issues. Examples will be drawn from recent international cases with connections to the U.S. External experts will be invited to some sessions. The course includes lectures and discussions. Students will have to write a short paper and give a presentation. This year’s paper topic is the corporate governance of financial institutions and how it differs from regular corporate governance. The seminar is held in an accelerated format.