The 2007-08 financial crisis has posed substantial challenges for bankers, economists and regulators: was it preventable, and how can such crises be avoided in future? This book addresses these questions.
The Financial Crisis and the Regulation of Finance includes a comprehensive overview of the crisis and reviews the theory and practise of regulation in the UK and worldwide. The contributors - all international experts on financial markets and regulation - provide perspectives and analysis on macro-prudential regulation, the regulation of financial firms, and the role of shareholders and disclosure.
This rigorous book will be of great interest to all those with an interest in banking and finance including academics, professionals, bankers, regulators, advisors and civil servants. Students on banking and finance courses will also find this clear and compact resource invaluable.
Edited by Christopher J. Green, Professor of Economics and Finance, Eric J. Pentecost, Professor of Economics and Tom Weyman-Jones, Professor of Industrial Economics, Loughborough University, UK
Contents: PART I: THE FINANCIAL CRISIS 1. Introduction Christopher J. Green, Eric J. Pentecost and Tom Weyman-Jones 2. `The Day the Music Died': The Financial Tsunami of 2007-09 Christopher J. Green 3. An Emerging Markets Perspective on the Recent Crisis Geoffrey Dennis PART II: REGULATION IN RETROSPECT AND PROSPECT 4. Economic Evidence and Financial Regulation Peter Andrews 5. The Economic Rationale for Financial Regulation Reconsidered: An Essay in Honour of David Llewellyn Richard J. Herring and Reinhard H. Schmidt 6. Moral Hazard Charles Goodhart PART III: MACROPRUDENTIAL REGULATION 7. Implementing the Macroprudential Approach to Financial Regulation and Supervision Claudio Borio 8. Rules for Money and Rules for Finance: A New Relationship After the Crisis? Franco Bruni 9. Financial Crises from 1803 to 2009: The Crescendo of Moral Hazard Forrest Capie and Geoffrey Wood PART IV: REGULATION OF FINANCIAL FIRMS 10. Early Intervention and Prompt Corrective Action in Europe David G. Mayes 11. The World of Unintended Consequences: A Post-Mortem on Regulation Q and Prologue for the Future Robert A. Eisenbeis and George G. Kaufman 12. UK Financial Reform Post Crisis: Is More Regulation the Answer? Shelagh Heffernan PART V: INFORMATION, SHAREHOLDERS AND PROJECTS 13. Asymmetries in Financial Information, Risk and Know-how: The Roles of Disclosure Rules, Financial Safety Nets and Market Discipline Morten Balling 14. `The New Masters of the Universe': Institutional Shareholder Engagement and the Regulation and Governance of Banks Andy Mullineux 15. Minimizing Collateral Damage: Options for Financing Public-Private Partnerships in the Wake of the Financial Crisis Darrin Grimsey and Mervyn K. Lewis Index