- Title Pages
-
Chapter 1 The Health Care Reform Legislation -
Chapter 2 The Simple Economics of Health Reform -
Chapter 3 The Economics, Opportunities, and Challenges of Health Insurance Exchanges -
Chapter 4 Can the ACA Improve Population Health? -
Chapter 5 Systemic Reform of Health Care Delivery and Payment -
Chapter 6 How Stable Are Insurance Subsidies in Health Reform? -
Chapter 7 Financial Regulatory Reform -
Chapter 8 Government Guarantees -
Chapter 9 How Little We Know -
Chapter 10 Finding the Sweet Spot for Effective Regulation -
Chapter 11 A Recipe for Ratings Reform -
Chapter 12 Should Banker Pay Be Regulated? -
Chapter 13 Fixing Bankers’ Pay -
Chapter 14 It Works for Mergers, Why Not for Finance? -
Chapter 15 Hedge Fund Wizards -
Chapter 16 Investment Banking Regulation After Bear Stearns -
Chapter 17 Why Paulson Is Wrong -
Chapter 18 Dr. StrangeLoan -
Chapter 19 Questioning the Treasury’s $700 Billion Blank Check -
Chapter 20 Auction Design Critical for Rescue Plan -
Chapter 21 A Better Plan for Addressing the Financial Crisis -
Chapter 22 Please Think This Over -
Chapter 23 Is Macroeconomics Off Track? -
Chapter 24 If It Were a Fight, They Would Have Stopped It in December of 2008 -
Chapter 25 Comment on Barbera -
Chapter 26 Pension Security Bonds -
Chapter 27 Carbon Taxes to Move Toward Fiscal Sustainability -
Chapter 28 Net Neutrality Is Bad Broadband Regulation -
Chapter 29 Trills Instead of T-Bills -
Chapter 30 The Google Book Settlement -
Chapter 31 The Stakes in the Google Book Search Settlement -
Chapter 32 The NFL Should Auction Possession in Overtime Games - Index
It Works for Mergers, Why Not for Finance?
It Works for Mergers, Why Not for Finance?
- Chapter:
- (p.115) Chapter 14 It Works for Mergers, Why Not for Finance?
- Source:
- The Economists' Voice 2.0
- Author(s):
Aaron S. Edlin
Richard J. Gilbert
- Publisher:
- Columbia University Press
The recent financial crisis has launched a wave of proposals to reform the financial sector to prevent a recurrence. Most, though, are either unlikely to have much of an effect on systemic financial risk or are too complex to be implemented successfully. This chapter proposes an intermediate approach that borrows from experience with mergers. Merger activities are reviewed by the U.S. Department of Justice (DOJ) and the Federal Trade Commission (FTC) to detect mergers that may raise prices. Under the Hart-Scott-Rodino Act, all proposed mergers that exceed a threshold value must be reported to the FTC. The details of the proposed merger are then reviewed by either the DOJ or the FTC, which can challenge the merger or negotiate modification of its terms. A similar system for the financial industry would require all financial firms, whose liabilities exceed some size threshold, to provide detailed reports of their financial structure and major assets and liabilities. There will also be a standard preventing firms from creating “substantial systemic risk,” that is, the kind of risk that is likely to cascade through financial markets.
Keywords: financial regulation, financial reform, financial risk, financial crisis, mergers, Hart-Scott-Rodino Act, systemic risk
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- Title Pages
-
Chapter 1 The Health Care Reform Legislation -
Chapter 2 The Simple Economics of Health Reform -
Chapter 3 The Economics, Opportunities, and Challenges of Health Insurance Exchanges -
Chapter 4 Can the ACA Improve Population Health? -
Chapter 5 Systemic Reform of Health Care Delivery and Payment -
Chapter 6 How Stable Are Insurance Subsidies in Health Reform? -
Chapter 7 Financial Regulatory Reform -
Chapter 8 Government Guarantees -
Chapter 9 How Little We Know -
Chapter 10 Finding the Sweet Spot for Effective Regulation -
Chapter 11 A Recipe for Ratings Reform -
Chapter 12 Should Banker Pay Be Regulated? -
Chapter 13 Fixing Bankers’ Pay -
Chapter 14 It Works for Mergers, Why Not for Finance? -
Chapter 15 Hedge Fund Wizards -
Chapter 16 Investment Banking Regulation After Bear Stearns -
Chapter 17 Why Paulson Is Wrong -
Chapter 18 Dr. StrangeLoan -
Chapter 19 Questioning the Treasury’s $700 Billion Blank Check -
Chapter 20 Auction Design Critical for Rescue Plan -
Chapter 21 A Better Plan for Addressing the Financial Crisis -
Chapter 22 Please Think This Over -
Chapter 23 Is Macroeconomics Off Track? -
Chapter 24 If It Were a Fight, They Would Have Stopped It in December of 2008 -
Chapter 25 Comment on Barbera -
Chapter 26 Pension Security Bonds -
Chapter 27 Carbon Taxes to Move Toward Fiscal Sustainability -
Chapter 28 Net Neutrality Is Bad Broadband Regulation -
Chapter 29 Trills Instead of T-Bills -
Chapter 30 The Google Book Settlement -
Chapter 31 The Stakes in the Google Book Search Settlement -
Chapter 32 The NFL Should Auction Possession in Overtime Games - Index
