## New Landscape, New Challenges: Structural Change and Regulation in the U.S. Financial Sector

_IMF Working Papers, August 1, 2007_

## Source details

**Canonical URL:** [New Landscape, New Challenges: Structural Change and Regulation in the U.S. Financial Sector](https://www.imf.org/en/publications/wp/issues/2016/12/31/new-landscape-new-challenges-structural-change-and-regulation-in-the-u-s-21201)

## Other formats

- [Markdown version](/en/publications/wp/issues/2016/12/31/new-landscape-new-challenges-structural-change-and-regulation-in-the-u-s-21201/index.md)
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## Bibliographic details
- Authors: Ashok Vir Bhatia
- Published: August 1, 2007
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451867596.001

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### Overview and Purpose
- Explores ways to fine-tune U.S. oversight arrangements given the rapid evolution of the U.S. financial sector and attendant regulatory challenges.
- Surveys the financial landscape by separating:
  - a highly regulated, multi-business, and (in terms of relative asset holdings) shrinking “core”; and
  - a lightly regulated, more specialized, and rapidly expanding “periphery”.
- Explains the U.S. regulatory philosophy and structure, emphasizing:
  - focus on core institutions; and
  - jurisdictional complexity.
- Highlights certain new challenges without presuming to have all the solutions.
- Draws out broad policy implications from the “30,000 foot level”.
- Concludes by tabling and discussing one specific reform idea.

### Key Findings and Themes
- Structural change in the U.S. financial sector has produced a contrast between a regulated core and an expanding periphery.
- The regulatory framework is characterized by complexity of jurisdiction and an emphasis on core institutions.
- New challenges arise from the evolving structure; the paper highlights these issues but does not claim comprehensive solutions.
- Broad policy implications are identified at a high, systemwide level (“30,000 foot level”).
- The paper culminates in the presentation and discussion of one concrete reform proposal.

### Subjects and Keywords
- Subjects:
  - Banking
  - CDOs
  - Commercial banks
  - Investment banking
  - Loans
- Keywords:
  - collateralized debt obligation
  - financial institution
  - hedge fund
  - holding company
  - market
  - WP

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/new-landscape-new-challenges-structural-change-and-regulation-in-the-u-s-21201_