Robert Shiller continues Yale's Financial Markets course by examining how regulation aims to offset the human errors discussed in the previous lecture. He lays out five levels of oversight: firm, trade group, regional, national, and international. At the firm level he covers the board of directors' duties of care and loyalty and the problem of tunneling. He traces the New York Stock Exchange from the Buttonwood Agreement to the present, then turns to Blue Sky laws from the Progressive era. National regulation gets the most attention, including the founding of the SEC, hedge fund oversight, insider trading enforcement, and the Dodd-Frank Act's creation of the Financial Stability Oversight Council and Consumer Financial Protection Bureau, alongside Europe's 2010 Supervisory Framework. He closes with international coordination through the Basel Committee and the G-20.