Make Markets Be Markets: Restoring the Integrity of the U.S. Financial System is the result of months of discussions among the country’s leading financiers, market experts, academics and former regulators. These discussions, on issues ranging from theory failures to regulatory incentives, have culminated in the development of a concrete plan for a financial system that can manage the flow of capital, price risk appropriately, reduce fraud and collusion, protect taxpayers, and provide liquidity—all without compromising innovation or stability.
The purpose of this report is to present a comprehensive plan for what must be done to fix our broken financial system. It provides a set of recommendations that together serve to prevent, detect, and credibly resolve financial crises. Making markets work as a system is the focus—emphasizing transparency, competition, and the important discipline of failure. The goal is to restore the integrity of the market system with a realistic, rather than romantic, perspective on the role that government must play in the making and enforcing of the laws and regulations that are essential support for the market system.