Regulatory Responses to Fraud and Market Manipulation in the Financial Markets

In September 2007, the collapse of the United States sub-prime mortgage market resulted in the global meltdown of the financial markets. This led in turn to the collapse of many international financial institutions including Northern Rock, Bradford and Bingley, American Insurance Group, Freddy Mac, Fannie Mae and Lehman Brothers. The G20 countries responded with a plethora of financial stimulus packages aimed at combating the largest global financial problem since the Wall Street Crash in October 1929 and the Great Depression. This monograph examines the impact that theoretical, historical, economic, technological, and political changes have had in shaping the development of financial services regulation in both countries prior to the financial crisis in 2007. Many commentators, regulatory agencies and politicians have argued that the recent financial crisis was the result of numerous interrelated factors which resulted in nation states introducing a raft of legislative measures to protect their economies. The book highlights the impact of another, perhaps an even more significant, trigger event, market manipulation. The book offers a comparative analytical review of the UK and US responses to market manipulation in the financial markets and the impact of shaping the development of financial services regulation in both countries. This monograph therefore provides a new and unique insight to the current debate on the global financial crisis, which may be of value to government policy- makers, law enforcement agencies, regulators, private sector and academia alike.