WHITHER CONSUMER PROTECTION IN FINANCIAL MARKETS? LESSONS FROM THE FINANCIAL CRISIS OF 1857

In: Economic affairs: journal of the Institute of Economic Affairs, Band 30, Heft 1, S. 97-100

Abstract

Consumer protection regulation has not prevented a collapse of trust in financial markets. Theories underlying regulatory intervention require review. In the financial crisis of 1857, firms rather than public authorities restored consumer confidence. Future regulatory regimes may permit greater scope for market‐based design of consumer protection measures.