the financial crisis, regulatory reform and the future of banking /
Adrian Blundell-Wignall, Paul Atkinson, Caroline Roulet.
Cham :
Palgrave Macmillan,
2018.
1 online resource
Intro; Foreword; Contents; List of Figures; List of Tables; Glossary of Acronyms and Concepts; Introduction; 1 Globalisation Sets the Background to the Crisis; Introduction to Globalisation; The OECD Countries Open Up; The Case of Japan; Mexico Crises; Washington Consensus; Emerging Asia; The China Growth Phase; In Summary; The China Path to Prosperity and the US Financial Crisis of 2007-2008; Export Success and Import Penetration Strategies; Exchange Rate Management and Pricing for Market Share; The Saving Glut and Real Interest Rates
Basic Bank Balance Sheet ArithmeticThe Boom in Derivatives; Regulatory and Tax Arbitrage with Complete Markets in Credit; A Basic Regulatory Principle; Banks, Implicit Government Guarantees and Shadow Banks; Tax Arbitrage; Targeting the Ratio of Risk Weighted to Total Assets to Maximise the Return on Equity; Summary; Appendix to Chapter 2: Problems with Pillar 1; References; 3 The Watershed Year of 2004: Origins and Causes of the Crisis; Introduction; Global Competition and the Equity Culture for Banking; Remuneration; Causality; Institutional and Regulatory Issues
Capital Inflows, Foreign Exchange Intervention and Bond BuyingThe Impact of the Rise of Asia on the West; The Competitive Response of Western Companies to Competition from Asia; The Impact of Import Penetration and Firm Innovation on Western Labour Markets; Deflation Pressures in Firms Most Affected by Globalisation; Summing up the Globalisation Background to the Crisis in the USA; The Great Bond Rally; The Great House Price Rally; Appendix to Chapter 1: Modelling the Effect of Foreign Buying on US Bond Yields; References; 2 Financial Innovation and Basel II
Introduction to Financial Deregulation and InnovationThe Basel Accords I and II; Financial Innovations: Securitisation and Derivatives; Support for Housing in the USA; Packaging Mortgages; Trading Mortgages Take off; Securitisation Follows; The 'Waterfall'; The Mortgage Conduit (REMIC) and Structured Investment Vehicles (SIVs); Teaser Rates and On-Selling; Derivatives; Derivatives Have a Long History; But the Huge Expansion of Derivative Activity Is Recent; Regulating OTC Derivatives in the Run-up to the Crisis; The Demand for Securitisation and Derivatives
Why Subprime Securitisation Was Concentrated in the USAWhy US Subprime Securitisation Accelerated from 2004; The American Dream Act; The Fannie and Freddie Caps; The Announcement of Basel II; The SEC Rule Changes in 2004; Corporate Governance; The Crisis Hits, the Lehman Moment; Appendix to Chapter 3: Modelling the Acceleration of US RMBS from 2004; References; 4 Business Models of Banks and Global Contagion; Introduction; Contrasting Banking Conglomerate Asset and Liability Composition; Synthetic CDO Issuance by Banks; Issuance of Credit Derivative Structured Products
0
8
8
8
8
Globalisation and the governance of the international financial system have arrived at the crossroads, where either a coherent level playing field for the cross-border activities of banks and multinational enterprises is settled upon, or the risk of another crisis will build up again. This book will explore the underlying problems alongside inconsistent economic and financial trends as a guide for researchers, advanced students and professionals to think about the interconnectedness of the factors involved. Readers will gain insights drawn from recent developments in economic theory and empirical research--a toolkit to help them in their future careers in economics and finance--illustrated with an analysis of the 2008 crisis and its aftermath.--