ABSTRACT
Trust has always been vital to the healthy functioning of financial markets and the stability of the financial institutions. The mix of public and private institutions that undergird this trust, however, can vary. Often these forces are ignored or taken for granted until something goes wrong. With a marked turn toward deregulation taking hold on both sides of the Atlantic, against a backdrop of central banks having played a very active role intervening to allay distress, it is a good time to revisit these fundamentals. This essay examines the importance of trust, how it is created, how it can be lost and how difficult it can be to rebuild. It concludes with some reflections on the current moment.
Judge, Kathryn, The Changing Architecture of Trust (June 30, 2025), Columbia Law and Economics Working Paper Forthcoming.
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