The Becker-Posner Blog: Re-Regulate Financial Markets?–Posner’s Comment Although one must be tentative in evaluating current events, I suspect that the deregulation (though again partial) of banking has been a factor in the current credit crisis. The reason is related to Becker’s very sensible suggestion that, given the moral hazard created by government bailouts of failing financial institutions, a tighter ceiling should be placed on the risks that banks are permitted to take.

Securities Law Prof Blog: SEC Proposes to Require Interactive Data from Mutual Funds SEC Proposes to Require Interactive Data from Mutual Funds The SEC voted unanimously to propose that mutual fund investors get access to key information about fees, performance, and strategies through interactive data, which would permit investors to make comparisons among thousands of funds.

Bloomberg.com: Bloomberg Podcasts Lehman’s Morse Says Oil Prices Will Drop to $80 in 2009 Listen/Download

reportonbusiness.com: Flaherty pushes draft law for single regulator Flaherty pushes draft law for single regulator

The Becker-Posner Blog: How Much government Regulation to "Protect" Consumers?Becker Becker asks: How would greater regulation have helped when commercial banks, one of the most heavily regulated of all industries, did so badly during this housing bubble? We learned in the 20’s that banks have to be regulated and did OK until S&L’s were "deregged" and the rubes that ran them began swinging for the fences, and perhaps from the chandeliers. Now, we’ve surely learned that despite having savvy economists and lots of computers the system will fail if the "lender" is able to pass his risk on to some other institution that also should know better but accepted the risk for an inadequate premium anyway.

How Thinking Costs You Behavioral Economics Shows That When It Comes to Investing, People Aren’t That Smart

reportonbusiness.com: Bondholders oppose BCE bid for fast appeal Bell Canada bondholders filed a motion Monday opposing BCE Inc.’s [BCE-T] request for a speedy appeal at the Supreme Court of Canada of a lower court decision that imperils the $35-billion buyout of the telecommunications company.

reportonbusiness.com: B.C. regulator bars European bank A European bank that held accounts at 11 B.C. investment dealers has been permanently barred from doing business in the province by a British Columbia Securities Commission panel.

Conglomerate Blog: Business, Law, Economics & Society MERS is a privately held company that “registers” mortgages. Ordinarily, the mortgagee (lender) must record its interest in the mortgage in the county land records. Any subsequent transfers of the mortgagee’s interest (for example, in the securitization process) must also be recorded. MERS short circuits this multiple recording process. Instead, the lender includes language in the Deed of Trust or Mortgage describing MERS as “a separate corporation that is acting solely as a nominee for Lender and Lender’s successors and assigns. MERS is the mortgagee under this Security Instrument.” MERS is recorded as the mortgagee in the county land records. Although MERS does not lend money, service the mortgage, or receive any of the payment stream from the mortgage, it remains as “nominee” through all future transfers. As a result, any subsequent transfers of interest in the mortgage are recorded only in MERS electronic system — not in the county land records.

Bank Lawyer’s Blog: LendingTree Sued Over Security Breach The security breach at LendingTree that allowed former employees to help other mortgage lenders gain access to mortgage application information, which we discussed last month, has given rise to what may become a class action lawsuit against LendingTree.