The government should rely more on the market to regulate large banks, according to Mark J. Flannery, a finance professor at the University of Florida.

Certificates of deposit, stock prices, and bond ratings all adjust quickly to the release of new information about a bank's health, he finds.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.