The article discusses the significance of trust in the U.S. financial regulation. Trust is reportedly important because transaction costs become high in the absence of trust and relationships characterized by trust provide greater opportunities for mutually beneficial exchange. Trust is defined as the willingness to make an individual vulnerable to another. The general regulatory approach to banking, insurance, and securities regulation in the U.S. is discussed.
Ronald J. Colombo,
The Role of Trust in Financial Regulation,
Vill. L. Rev.
Available at: http://digitalcommons.law.villanova.edu/vlr/vol55/iss3/2