FedSoc panel wonders: can a free market self-police?

BY DAVID

Professor Jonathan Macey
Professor Lynn LoPucki LLM ’70

Visiting Professor Lynn LoPucki LLM ’70 and Yale Law School Professor Jonathan Macey discussed whether the free market can effectively police financial institutions, in a panel sponsored by The Federalist Society.

LoPucki, a Professor at UCLA and an expert in public bankruptcy, uses in-depth empirical analysis in his research, which recently highlighted the effects of forum shopping and court competition during bankruptcy. Such research has led LoPucki to favor changing bankruptcy forum rules.

Macey, an expert on markets and a proponent of market-based solutions, argued that government regulators improperly abandoned potential market solutions when selecting to put a moratorium on short selling of certain stocks earlier this year and blamed Securities and Exchange Commission regulators for insufficiently policing fraud in short selling.

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