Professor Rosa Lastra has co-authored a new article which questions the wisdom of limited liability for all equity holders in the case of banks and systemically important financial institutions (SIFIs)
Professor Rosa Lastra, Sir John Lubbock Chair in Banking Law at the Centre for Commercial Law Studies, and Professor Charles Goodhart have co-authored a new paper titled 'Equity finance: matching liability to power' for the Journal of Financial Regulation.
Since the Great Financial Crisis, a debate has been raging over how better to align financial power and liability, with solutions ranging from bonus clawbacks to new legal responsibilities for corporations. Guest authors Charles Goodhart of the London School of Economics and Rosa Lastra of Queen Mary University propose a more radical proposal - a shake-up of limited liability.
The article was featured on the Financial Conduct Authority (FCA) Insight webpages and the National Institute of Economic and Social Research (NIESR) webpages.
