The economic implications of the global financial crisis and the Great Recession have not yet been fully explored. The YPFS contributes to the understanding of the interactions between financial regulation and firm actions during the financial crisis through the organization, collection, and annotation of primary sources. This takes the form of a series of "raw" cases examining in detail, through financial statements, internal documents, and interviews with participants.
Our goal is to get a ground-level view of “regulatory arbitrage,” so that in the long run the scholar-regulator community can better understand how to properly craft and enforce rules. The raw case, a pedagogical tool developed at Yale SOM over the past several years that presents a large amount of data and information about a management problem, provides an appropriate vehicle for in-depth investigation of a firm's decision-making and broad consideration of how that firm's actions affect a larger system.
While the broad themes of the financial crisis have been intensely studied by academics, we believe that regulators will benefit from a better understanding of firm-specific differences in governance, risk management, and regulatory strategies that contributed to the failure of some firms and the survival of others.