Regulatory Plinko: A New Form of Regulation to Solve an Old Problem in the United States and the United Kingdom [Note]

Abstract

Information asymmetry has long created issues at all levels of the financial industry. The inability of consumers, financial agents, and regulators to know the information necessary to act rationally has had cataclysmic impacts on the economy. Currently, the United States still struggles to handle this problem as regulators struggle to understand necessary aspects of banks and produce regulations that are impossible to comply with. The United Kingdom struggles with information asymmetry as it tries to craft a financial regulatory framework post-Brexit. This Note will attempt to provide a new style of regulation that will reduce information asymmetry while more fairly rewarding good and bad actors in the financial system.