The John M. Olin Center

Paper Abstract

221. H. Jackson, The Regulation of Financial Holding Companies, 11/97; subsequently published in The New Palgrave Dictionary of Economics and the Law, Peter Newman, (ed.), (New York: Stockton Press, 1998), Vol. 3, P-Z, 232-237.

Abstract: This essay, written as an entry for the New Palgrave Dictionary of Law and Economics, explores the justifications for imposing special regulations on financial holding companies. The essay argues that the justifications for regulating financial holding companies derive from the same policies that justify regulating financial intermediaries directly. But because these direct regulations are not completely effective, supplemental regulation at the holding company level is often required. After reviewing the basic elements of holding company regulation from this perspective, the essay concludes with a discussion of several unresolved questions involving the regulation of financial holding companies.

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