This chapter examines the impact of private and public enforcement of securities regulation on the development of capital markets. After a review of the literature, it considers empirical findings related to private and public enforcement as measured by formal indices and resources, with...

According to conventional wisdom, the 2008 financial crisis fundamentally changed how policymakers approach financial regulation. Before the crisis, regulators sought to prevent individual financial institutions from collapsing, but this “microprudential” strategy proved inadequate to stop...