What Went Wrong? An Initial Inquiry Into the Causes of the 2008 Financial Crisis

@article{Coffee2009WhatWW,
  title={What Went Wrong? An Initial Inquiry Into the Causes of the 2008 Financial Crisis},
  author={John C. Coffee},
  journal={Journal of Corporate Law Studies},
  year={2009},
  volume={9},
  pages={1 - 22}
}
  • J. Coffee
  • Published 1 April 2009
  • Economics
  • Journal of Corporate Law Studies
The 2008 financial crisis was the direct product of a supply-driven bubble in which a new financial technology (asset-backed securitization) failed. In the US, this failure seems attributable in large measure to two under-recognized causes: (a) excessive reliance on a gatekeeper—the credit rating agency—which became increasingly subject to client pressure as competition increased in its market; and (b) a shift toward more self-regulatory rules that permitted US investment banks to increase… 
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