In this article, I review some of the main findings described in Regulating Wall Street: The Dodd–Frank Act and the New Architecture of Global Finance, which I co-edited.1 As such, this article is based on the work of 40 or so faculty members and PhD students at New York University’s Stern...

We present a simple model of systemic risk and show how each financial institution’s contribution to systemic risk can be measured and priced. An institution’s contribution, denoted systemic expected shortfall (SES), is its propensity to be undercapitalized when the system as a whole is...

We present an economic model of systemic risk and show that each financial institution's contribution to systemic risk can be measured as its systemic expected shortfall (SES), i.e., its propensity to be undercapitalized when the system as a whole is undercapitalized. SES increases in the...