John C. Coffee: “Third, we should review regulatory policies and accounting rules to ensure that they do not induce excessive…”

Finally, we should consider whether the creation of an authority specifically charged with monitoring and addressing systemic risks would help protect the system from financial crises like the one we are currently experiencing.

The Volcker Rule was a reasonable way of doing that, by getting banks out of the business of proprietary trading.

The biggest problems in our financial economy are the problems associated with systemic risk.

Second, we must strengthen what I will call the financial infrastructure--the systems, rules, and conventions that govern trading, payment, clearing, and settlement in financial markets--to ensure that it will perform well under stress.