The Law and Structure of the International Financial System: Regulation in the United States, EEC, and Japan

By John H. Friedland | Go to book overview

Introduction

This book considers two kinds of financial markets: universal banking markets such as Germany and Japan where banks own equity shares, and where financing is dependent on long-term relations and cross-ownerships between borrowers and lenders, and arm's-length financial markets, where stock markets are largely independent of banks and where market prices, rather than long-term relations, determine financing (sometimes called "capital market"). The latter system prevails in the United States (US) and United Kingdom (UK). Although in Japan large securities firms do exist, and bank ownership of equities is limited pursuant to US influenced legislation, relational financing predominates over arm's-lengths financing.

In capital market countries, many shareholders may hold shares as part of an index, the securities markets are liquid, and consumer credit is plentiful. In universal banking market countries where there is bank ownership and control of industrial companies, where control is exerted because of bank domination of securities markets, there tends to be less financial innovation and less access to consumer credit.

Until the Insider Trading Directive of the European Economic Community (EEC) and the recent changes in Japan and Japanese attitudes toward capital markets, insider trading was commonplace in the day-to- day business in Japan and Germany. Securities laws, as Americans understand them, and the awesome authority of the Securities and Exchange Commission (SEC) are unknown in the European heritage. The United Kingdom, which has always entertained a system far closer to that of the United States in terms of its separation of securities and banking, enacted sweeping legislation only in the 1980s; stock markets were deregulated and banks allowed to enter into the securities market, primarily through subsidiaries. The reforms culminated in the Financial Services Act of 1986. A regulatory framework similar to that created in the United States during

-1-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
The Law and Structure of the International Financial System: Regulation in the United States, EEC, and Japan
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
/ 204

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.