| Finance is the core of modern economy, and maintaining financial security is an important part of national economic security. The financial industry is operating currency trades, the special nature of this business determines that it is a high-risk industry, and with the rapid expansion of the scale of financial assets, continuous financial innovation as well as further development of financial globalization, through all kinds of financial derivative products financial risk passes to all over the world, and expands the upgrade through leverage. Because of these reasons, a country or a regional financial market turmoil may lead to a chain reaction, and it may even trigger a global financial crisis through continuous accumulation and fully amplified.With the bankruptcy of several financial institutions on Wall Street, the subprime mortgage crisis erupted in the U.S. in2007had quickly evolved into a global financial crisis until September2008, and it also passed from the capital market to the real economy which eventually led to the Great Depression. Although a variety of causes together led to the subprime mortgage crisis, there was no doubt that the financial crisis to some extent reflected the failure of the current financial regulation. After the crisis, the international financial regulatory organizations and many major developed countries began to reform the financial regulatory. In this crisis, China has also been a certain extent, but because of China’s low current level of capital market liberalization and the implement of sound macroeconomic policies for a long time, the impact is limited, partial, and can be controlled. With the development and deepening of economic globalization and financial globalization, and the further liberalization of the financial markets after China’s accession to WTO as well, China’s financial regulatory reform is imperative. This paper is divided into four parts, as follows:The first part introduces the connotation of financial regulation, and then describes the legal origin of the financial regulation system, the characteristics and development of the start-up period of financial regulation law, the full establishment period, the deregulation period and the re-adjustment and change period are included. Finally this paper introduces the legal value the financial regulation plays in maintaining financial stability and preventing financial risks. This part is the ideological and theoretical basis for the entire article.The second part analyzes the legal defect of subprime crisis and financial supervision. In this part, from the background of the subprime crisis, this paper emphasizes the analysis of the three causes of the crisis, namely the implementation of long-term U.S. monetary policy, excessive financial innovation and the burst of real estate bubble, and then points out the existing problems in the financial regulatory law, which is the core reason for the subprime mortgage crisis.The third part focuses on financial regulatory law reform after the U.S. subprime mortgage crisis which is based on the analysis of U.S. financial regulatory model. From the content, the regulatory system and the changing of idea of "Blueprint for a Modern Financial Regulatory Framework","Financial Regulatory Reform-A New Foundation: Rebuilding Financial Supervision and Regulation","Dodd-Frank Wall Street Reform and Consumer Protection Act" to analyze U.S. financial regulatory reform.The forth part returns to the construction of China’s financial regulatory law, which is the focus of this article. Starting from the development process of China’s financial regulation, many problems have been found under the analysis of the regulatory status in this part. To perform China’s financial regulatory law reform, four recommendations are proposed, improving the legal system of financial supervision, building the macro-prudential supervision mechanisms, strengthening the protection of financial consumer and strengthening international cooperation are included. |
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