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Selected Works

Banking and Finance Law

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Banking and Finance

William Birdthistle

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Full-Text Articles in Law

Breaking Bucks: Sec Regulation By Obfuscation, William A. Birdthistle Dec 2009

Breaking Bucks: Sec Regulation By Obfuscation, William A. Birdthistle

William Birdthistle

This Article argues that the Securities and Exchange Commission’s first and most significant response to the economic crisis profoundly contradicts widely accepted theoretical and regulatory approaches to financial oversight. More alarmingly, the SEC’s newest rules increase rather than decrease the likelihood of future failures in money market funds and the broader capital markets. Scholars – of both neoclassical and behavioral economic theory – have long insisted that transparency and disclosure play essential roles in ensuring efficient capital markets and sound financial regulation. Professors Gilson and Kraakman notably argued that the efficient capital market hypothesis, and its reliance on a market ...