The Future of Financial Regulation: Who Should Pay for the Failure of American and European Banks?
Cambridge University Press, 2/11/2016
EAN 9781107514508, ISBN10: 1107514509
Paperback, 596 pages, 22.8 x 15.2 x 3.4 cm
A number of changes have been made to the supervision and regulation of banks as a result of the recent financial meltdown. Some are for the better, such as the Basel III rules for increasing the quality and quantity of capital in banks, but legal changes on both sides of the Atlantic now make it much more difficult to resolve failing banks by means of taxpayer funded bail-outs and could hinder bank resolution in future financial crises. In this book, Johan A. Lybeck uses case studies from Europe and the United States to examine and grade a number of bank resolutions in the last financial crisis and establish which were successful, which failed, and why. Using in-depth analysis of recent legislation, he explains how a bank resolution can be successful, and emphasizes the need for taxpayer-funded bail-outs to create a viable banking system that will promote economic and financial stability.
List of abbreviations
Part I. A Chronological Presentation of Crisis Events January 2007Ã¢â‚¬â€œDecember 2014
Part II. Bail-Out and/or Bail-In of Banks in Europe - A Country-by-Country Event Study on Those European Countries Which Did Not Receive Outside Support
1. United Kingdom
Northern Rock, Royal Bank of Scotland (RBS), Lloyds Banking Group
IKB, Hypo Real Estate, Commerzbank, Landesbanken
3. Belgium, France, Luxembourg
Fortis, ING, SNS Reaal
Monte dei Paschi de Siena
Roskilde Bank, Fionia Bank and the others vs Amagerbanken and Fjordbank Mors
Part III. Bail-Out and/or Bail-In of Banks in Europe - A Country-by-Country Event Study on Those European Countries Which Received IMF/EU Support
Landsbanki, Glitnir and Kaupthing
Anglo Irish Bank, Bank of Ireland, Allied Irish Banks
Emporiki, Eurobank, Agricultural Bank
Caixa Geral, Banco Espirito Santo, Millennium Bank
Bankia and the other ex-cajas
Bank of Cyprus, Popular Bank (Laiki)
Part IV. The Tarp Program and the Bailing Out (and Bailing In) of US Banks
13. The roles of the FDIC, the Treasury and the Fed in the crisis
Bear Stearns, Merrill Lynch and Lehman Brothers
Countrywide, IndyMac, Washington Mutual and Wachovia
AIG, Citibank and Bank of America
zombies too big to fail?
Part V. Summary of the Micro Studies
Part VI. Political and Regulatory Responses to the Crisis - To Bail Out or To Bail In, That's the Question
17. Future bail-outs in the United States under Dodd-Frank and OLA
18. Future bail-outs in the European Union under the Single Resolution Mechanism and the Bank Recovery and Resolution Directive
towards host-country supervision and resolution?