The Advantage of Competitive Federalism for Securities

by Romano, Roberta

• ISBN13: 9780844741734
• ISBN10: 0844741736
• Format: Paperback
• Copyright: 2003-01-01
• Publisher: Aei Press

Summary

The current approach toward U.S. securities regulation by the Securities and Exchange Commission should be revamped by implementing a regime of competitive federalism.

Author Biography

Roberta Romano is the Allen Duffy/Class of 1960 Professor of Law at Yale Law School

Table of Contents

Preface	p. vii
Introduction	p. 1
Rationales for Securities Regulation, the Effectiveness of the SEC, and Competitive Federalism	p. 12
Underproduction of Information	p. 13
Underproduction of Information Concerning Interfirm Externalities	p. 29
Protection against Fraud and Manipulation	p. 42
The Essence of Competitive Federalism	p. 45
Benefits of a Competitive Securities Regime	p. 48
Should Initial Offerings and Secondary Trading Markets Be Distinguished?	p. 50
What Are the Implications of the Collapse of Enron?	p. 53
State Competition for Corporate Charters	p. 63
The Evidence That State Competition for Charters Benefits Shareholders	p. 64
Do U.S. States Compete for Charters?	p. 75
Is State Competition Inefficient Because of Network Externalities?	p. 83
Is State Takeover Regulation Evidence That a National Regime Would Be Superior to State Competition?	p. 92
Implementing Competitive Federalism for Securities Regulation	p. 112
What Must Be Done to Achieve Competition?	p. 112
Additional Requirements for Competitive Federalism to Be Effective	p. 124
How Would State Competition for Securities Regulation Work?	p. 131
Uniformity and Variety in Securities Regulation under Competitive Federalism	p. 137
Is Securities Regulation Sufficiently Different from Corporate Law to Render Competition Ineffectual?	p. 142
Regulation by Exchanges	p. 144
Competitive Federalism and International Securities Regulation	p. 147
Implementing Competitive Federalism in the International Setting	p. 147
Feasibility of International Competition	p. 149
Implications for Foreign Issuers in U.S. Markets	p. 152
Investor Protection Concerns under International Regulatory Competition	p. 156
Comparison with Other Reform Proposals	p. 168
Conclusion	p. 172
Notes	p. 177
Index	p. 293
About the Author	p. 301
List of Tables
Delaware's Revenue from Corporate Charters	p. 133
The SEC's Financing	p. 134
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