Reinventing Financial Regulation offers an analysis of the fundamental flaws that plague the
current system of financial regulation one built around ideas of risk-sensitivity and capital
adequacy. Author Avinash Persaud argues that while some sensible reforms have been introduced
a fresh approach centered on risk capacity is required. When the entire regime is compromised
simply slapping bandages on each new wound will do nothing to cure the underlying disease.
Reinventing Financial Regulation goes beyond an urgent call to fix our profoundly troubled and
damaged financial markets. It is a blueprint for an effective financial regulation system that
could very well save the future of finance. What would a well-regulated financial system look
like? Until now policymakers financial experts and leading academics have been content to
avoid facing this question head on. We have been offered piecemeal reforms that ultimately
leave the global financial system exposed to different versions of the same risks that so
recently brought it to its knees. The world economy literally cannot afford to dodge this
question any longer. Persaud's goal to bring clarity and a powerful simplicity to the financial
regulation process results in a systematic and apolitical framework for fixing the world's
fractured financial industry and transforming its regulation not just for today's financial
climate but once and for all.
