Financial Reregulation

Financial reregulation is defined as a process of reversing or reregulating previously deregulated financial rules and regulations that allowed markets to operate more efficiently without burdensome constraints. The reforms in the first half of the 20th century created a system of regulatory agencies, most of which remain today, that were organized by financial activity. Separate agencies focused on separate activities, often with very different priorities. The fragmented system left room for variation across regions and allowed for some self-regulation by private institutions. In the four decades following the Great Depression, few changes were made to the regulatory framework. However, in the next three decades, technological advances, as well as shifts in ideology and political power, have helped transform the system of financial regulation in America. ...