Abstract
The United States is currently recovering from the failure of the residential mortgage backed security (RMBS) market and the consequent Great Recession. In response to the 2007 financial crisis, the Securities and Exchange Commission adopted new regulations, pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act, to address the lax regulation that created the environment leading up to the financial crisis. This Note explores the collapse of the RMBS market as one of the main drivers of the financial crisis and addresses the inadequacies of the newly adopted regulations. First, this Note provides background to the mechanics of subprime mortgages and discusses the subprime market meltdown. This Note then provides an overview of the current litigation occurring between Wall Street firms and institutional investors. This Note concludes by discussing the newly adopted regulations and arguing that the downfall of the Dodd Frank Wall Street Reform and Consumer Protection Act is the unaddressed issues that create the potential for a similar future crisis.
Recommended Citation
Mizerak, Eve
(2012)
"When 90% of the Loans Are Exceptions to the Rule, There Is No Rule: Navigating through Post-Financial Crisis Regulation and Wall Street's Caveat Emptor Defense,"
Indian Journal of International Economic Law: Vol. 5, Article 6.
Available at:
https://repository.nls.ac.in/ijiel/vol5/iss1/6