Financial Crisis Seminar

This seminar will examine the global financial crisis of 2008 and consider these key questions: How did the crisis arise and unfold? What lessons should we draw from it? How should we reform financial institution regulation? What reforms have Congress and U.S. financial regulators adopted? More broadly, how can we best avoid future financial debacles? To what extent can and should we rely on regulation? On market discipline?

During the first part of the course, students will read and discuss a carefully selected set of sources that shed light on these questions. The sources will cover such topics as: the U.S. real estate bubble and its roots in lax monetary policy and a global capital glut; unsound lending, particularly to subprime borrowers; poorly understood financial innovation (e.g., credit default swaps); unreliable credit ratings and their role in encouraging investors worldwide to buy U.S. subprime mortgage-backed securities; the growth of shadow banking; deficient financial regulation; and recent and proposed reforms. Each student will begin writing a paper on a topic worked out with the professor.

In the second part of the course, students will circulate and present to the class preliminary versions of their papers; comment on other students’ papers; and submit final versions of their own papers.

Credits: 2

Type: SEM

Does this course satisfy the writing requirement? Yes

Is this course open to LL.M. students? Yes

Do the credits of this course count toward the specialized program credits that students need for the Banking, Corporate & Finance Law LL.M. Program? Yes