Research On The Laws Of Financial Regulation Under The Subprime Crisis

The subprime crisis has a severe impact on world economic development. Since. the outbreak of the crisis in 2007, the global financial market is suffering a setback. Many of the financial institutions bankrupted. And the crisis has also taken a heavy toll on the real economy. With the world economy still mired in recession, the great losses of financial institutions have been revealed.In the past a few years, American investment banks, financial regulators have made a large number of financial derivative products related to the sub-prime mortgages. Because of the basic features of the financial derivative products, high profit, high leveraged and high risk, the price of the financial assets dropping seriously and is really contagiously and affectively. Those financial holding companies suffer the most. The financial magnates, such as Bear Stearns Cos, Merrill Lynch, Lehman Brothers Holdings Inc, have already withdrawn from the stage. When the sub-prime crisis causes a tremendous losses, we may asked, what's wrong with the financial regulation system, as a tool of fending off financial market risks? From the angle of law, I will elaborate the mode of financial regulation system macroscopically, and from the microscopical level, I will begin with the laws on financial derivative products and financial holding company, hope to explore ways to improve them under this financial disaster.The thesis lays on the reality of China's financial market, combining with the lessons we draw from this crisis. I will discuss the financial regulation system in our nation under the subprime crisis in the perspective of juristical analysis, and use the methods of demonstration research, normative analysis, comparative analysis and logical deduction, to improve the financial regulation system in a legal way.This article has 5 parts, the first part is introduction, which contains the background and the significance, the literature review and a general discuss of the article's structure, study methods and the innovation points. The second part is about the causes and the influences of the crisis, theoretic foundation of financial regulation and the laws concerned, mainly about the definition and relationship between the two aspects. And the last three parts carry on research on the mode of financial regulation system macroscopically, on the laws of financial derivative products and financial holding company microscopically. Through the comparisons of different countries'different methods on financial regulation and put forward the advices to the financial regulation of our country.Due to my limited knowledge of this issue, every word and view point in this article need to be weighed. Errors of judgments are, of course, inevitable, and I am sincerely looking forward your advices.