Abstract

Government interventions, implemented since the beginning of October 2008, succeeded in smoothing the financial crisis but not in eradicating the causes of regulatory failures. Hence, a legacy of the crisis is the need for a new regulation and supervision. The aim of this paper is to offer an assessment of the new rules and supervisory set-up outlined by the US Administration and by the European Union. Our analysis leads to seven regulatory recommendations, which require a substantial re-organization of supervision in the financial market.