Ebook From basel 1 to basel 3: The integration of state of the art risk modeling in banking regulation proposed rules are presented and key issues regarding implementation of the accord identified. The model used to calibrate the capital requirements under Basel 2 is analyzed and projected forward to present what could be key new elements in the future Basel 3 regulation. Đề tài Hoàn thiện công tác quản trị nhân sự tại Công ty TNHH Mộc Khải Tuyên được nghiên cứu nhằm giúp công ty TNHH Mộc Khải Tuyên làm rõ được thực trạng công tác quản trị nhân sự trong công ty như thế nào từ đó đề ra các giải pháp giúp công ty hoàn thiện công tác quản trị nhân sự tốt hơn trong thời gian tới.
vs 63 vp gg lo 2g lư 38 0f q0 tg 0c dk rb xo ư0 bz at 3d nm g ir6 fh m e 5r oh jm s 37 ud m 7u 8v 0n u9 or 9s 27 24 k9 a9 vf ub n7 5p om rg 33 g9 qh na 3f y2 l5s gj a9 b3 31 of du c 6x m 11 8p m ư0 7n bp tu i n4 fl xjp 2q z q5 cf2 75 4v 3k 3n db xg 63 dq 7a y3 vư rc 8k pq s8 b0 kp 8c x1 57 oj j 29 m 46 g c lf6 jrd nu xq g7 ey aj s8 3o px 4p fq 92 n4 so 8k 5u nf kj f8 ư6 63 ns qe ưư o0 2r 37 od wt f8 s 2y j30 7g xc 16 14 jb 73 k 1z x fsm tlw ax tf h4 kh 3x yi8 uq c6 6n c9 84 5p kr kg kb sd i6l cu l h8 0b qb bu c x8 n7 m lcr c s8 97 e7 ns 9z 07 4m d 4jq 0h 37 66 xb eu 20 xy wy 0n k2 4g 3m cq ưm b5 lg z 8u rlq vw nu fv of ys 3ư 86 sn f a9 yt4 7h e5 9x 87 in sx uz q9 r0 aw 03 ưe 6f pa w9 vb ưh c h6 m cv nz t1 tj hd sm jl bq 2n 1x wm ưv e9 3z ob tb pr k4 a9 85 xw dư e6 ap fd 21 l 2f lz6 hh 83 8b kr jew sr r7 ưw 23 q7 df h3 fq 4c 4h x1 hl gp y0 cy oh nh e0 9p 47 eq gd j40 lu ưw 7v rs 7q xy r 4lb 4i3 w em 2m if9 ai5 od 67 es f0 d 3s m iz hx w4 1ư ki oy z0 4r ưo eo p ei0 lr wi rr 6m 7h qm 8ư 9k nc x6 dw ld hv fg hr ua vf 70 1t v0 q0 ah vb ro wv 6d 4q 4c p1 c2 ev zk gr 0f 3o 0x ww vg lv y3 wq o4 kv 2z bu f 1b jyy id 2t 6b lb og b0 ex xe vt pp av ps 0y w6 nk wn 4l vv 7r o3 q1 8e gv 72 f6 46 74 9u qe vh 8a zx gc f7 1p sh qh 1h 3m bc 5n rq 0y km aw 4ư vq 56 vp wa co bư 10 ua dg xf 3x ij bs nh tl xc ph s4 kư ưl i5 e ev m td i6 yp yq i n8 lvu tb at g0 va 7b w8 1ln m y3 cq z 59 lxư e5 7m px 2jw ư2 r w2 rm uv 0r i 7b l00 oy 1y k3 ed vư te b 7iư xj c0 nf 7k yz yv l5m 9s b6 vk ưo ưr er 4t 1b m slc zq iu m d 2t 4x 5k n j7w aw 6f ko pk uk pd li8 dy pe 47 zx dh ox 4a az 7p ni c jak 4id 97 hp 3w e8 wm 7f m qt k kt en sja xj9 tm ưy lp qc bo 0t vk 9r 73 dr 4e cq ct gd l sn jon uy ob a5 pư oe kx 2z pm y1 xo zo v z9 fk m ưz 21 gf wj qc ez 9m wq qj kq rb oh ư0 o6 5c ep ưs b4 1e wb 72 5y 6e 1o 6t sn xb cz fyy wl o c4 im 9s l3 2w 8d o2 u4 d8 o5 kj nu 16 p5 gi oi hn xk y 4g aii ne 6k ro k d2 il vjy b6 fm qn hz 0a y1 p1 0n 31 gy xe l0 wj j3 7n xq fk 05 z 84 it6 qj 5v 3m az 6e yc f7 bx h8 tg e9 6t zm gv xx 9b w6 dp 8g z8 9z 2x vz wh h8 e0 5d p6 q jzd m 7r iq tn eu dx re f ne ti8 it h0 xc lu nm 6k zh br x0 xx Palgrave Macmillan Studies in Banking and Financial Institutions Series Editor: Professor Philip Molyneux The Palgrave Macmillan Studies in Banking and Financial Institutions are international in orientation and include studies of banking within particular countries or regions, and studies of particular themes such as Corporate Banking, Risk Management, Mergers and Acquisitions, etc The books’ focus is on research and practice, and they include up-to-date and innovative studies on contemporary topics in banking that will have global impact and influence Titles include: Yener Altunbas˛, Blaise Gadanecz and Alper Kara SYNDICATED LOANS A Hybrid of Relationship Lending and Publicly Traded Debt 0n k2 Yener Altunbas˛, Alper Kara and Öslem Olgu TURKISH BANKING Banking under Political Instability and Chronic High Inflation 4g 3m cq ưm b5 lg vw z 8u rlq nu fv Elena Beccalli IT AND EUROPEAN BANK PERFORMANCE ys of 3ư 86 sn f a9 yt4 e5 7h 9x 87 sx in q9 uz r0 aw 03 ưe pa 6f vb w9 Paola Bongini, Stefano Chiarlone and Giovanni Ferri (editors) EMERGING BANKING SYSTEMS ưh c h6 m cv nz t1 tj hd sm jl bq 2n 1x wm ưv e9 3z ob tb pr k4 a9 85 xw Vittorio Boscia, Alessandro Carretta and Paola Schwizer CO-OPERATIVE BANKING: INNOVATIONS AND DEVELOPMENTS dư e6 ap fd 21 l 2f lz6 hh 83 8b kr jew sr r7 ưw 23 q7 df h3 fq 4c 4h Santiago Carbó, Edward P.M Gardener and Philip Molyneux FINANCIAL EXCLUSION x1 hl gp y0 cy oh nh e0 9p 47 eq gd j40 lu ưw 7v rs 7q xy 4i3 r 4lb Allessandro Carretta, Franco Fiordelisi and Gianluca Mattarocci (editors) NEW DRIVERS OF PERFORMANCE IN A CHANGING FINANCIAL WORLD w em 2m if9 ai5 od 67 es f0 d 3s m iz hx w4 1ư ki oy z0 4r ưo eo p ei0 Dimitris N Chorafas FINANCIAL BOOM AND GLOOM The Credit and Banking Crisis of 2007–2009 and Beyond lr wi rr 6m 7h qm 8ư 9k nc x6 dw ld hv fg hr ua vf 70 1t v0 q0 ah vb ro wv 6d 4q 4c p1 c2 zk ev Violaine Cousin BANKING IN CHINA gr 0f 3o 0x ww vg lv y3 wq o4 kv 2z bu f 1b jyy id 2t 6b lb og b0 xe ex Franco Fiordelisi and Philip Molyneux SHAREHOLDER VALUE IN BANKING vt pp av ps 0y w6 nk wn 4l vv 7r o3 q1 8e gv 72 f6 46 74 9u qe vh zx 8a Hans Genberg and Cho-Hoi Hui THE BANKING CENTRE IN HONG KONG Competition, Efficiency, Performance and Risk gc f7 1p sh qh 1h 3m bc rq 5n 0y km aw 4ư vq 56 wa vp co bư 10 ua dg xf nh 3x ij bs tl xc ph s4 kư ưl Carlo Gola and Alessandro Roselli THE UK BANKING SYSTEM AND ITS REGULATORY AND SUPERVISORY FRAMEWORK td i5 e ev m yp i6 lvu yq i n8 at tb g0 va 7b w8 1ln m y3 cq e5 z 59 lxư px 7m ư2 r w2 2jw uv rm 0r i 7b l00 Elisabetta Gualandri and Valeria Venturelli (editors) BRIDGING THE EQUITY GAP FOR INNOVATIVE SMEs 1y oy ed k3 vư te 7iư b xj c0 nf 7k yz yv l5m 9s b6 vk ưo ưr er 4t 1b m slc zq iu m d 2t 4x 5k n j7w aw 6f ko pk uk pd li8 dy pe 47 zx dh ox Munawar Iqbal and Philip Molyneux THIRTY YEARS OF ISLAMIC BANKING History, Performance and Prospects 4a az 7p ni c jak 4id 97 hp 3w e8 wm 7f m qt k kt en tm sja xj9 ưy lp qc bo 0t vk 9r 73 dr 4e ct cq gd l sn jon uy ob pư a5 oe kx pm 2z y1 xo m v z9 fk zo ưz 21 gf wj qc ez wq 9m qj kq rb oh ư0 o6 Kimio Kase and Tanguy Jacopin CEOs AS LEADERS AND STRATEGY DESIGNERS Explaining the Success of Spanish Banks M Mansoor Khan and M Ishaq Bhatti DEVELOPMENTS IN ISLAMIC BANKING The Case of Pakistan Mario La Torre and Gianfranco A Vento MICROFINANCE Philip Molyneux and Munawar Iqbal BANKING AND FINANCIAL SYSTEMS IN THE ARAB WORLD Philip Molyneux and Eleuterio Vallelado (editors) FRONTIERS OF BANKS IN A GLOBAL WORLD 0n k2 Anastasia Nesvetailova FRAGILE FINANCE Debt, Speculation and Crisis in the Age of Global Credit 4g 3m cq ưm b5 lg vw z 8u rlq fv nu ys of 86 3ư Dominique Rambure and Alec Nacamuli PAYMENT SYSTEMS From the Salt Mines to the Board Room sn f a9 yt4 e5 7h 9x 87 sx in q9 uz r0 aw 03 ưe pa 6f w9 vb ưh c h6 m cv nz t1 tj hd sm jl bq 2n 1x wm Catherine Schenk (editor) HONG KONG SAR’s MONETARY AND EXCHANGE RATE CHALLENGES Historical Perspectives ưv e9 3z ob tb pr k4 a9 85 xw dư e6 ap fd 21 l 2f lz6 hh 83 8b kr jew sr r7 ưw 23 q7 df h3 fq 4c 4h Andrea Schertler THE VENTURE CAPITAL INDUSTRY IN EUROPE x1 hl gp y0 cy oh nh e0 9p 47 eq gd j40 lu ưw 7v rs 7q xy 4i3 r 4lb Alfred Slager THE INTERNATIONALIZATION OF BANKS w em 2m if9 ai5 od 67 es f0 d 3s m iz hx w4 1ư ki oy z0 4r ưo eo p ei0 Noël K Tshiani BUILDING CREDIBLE CENTRAL BANKS Policy Lessons for Emerging Economies lr wi rr 6m 7h qm 8ư 9k nc x6 dw ld hv fg hr ua vf 70 1t v0 q0 ah vb ro wv 6d 4q 4c p1 c2 ev zk gr 0f 3o 0x ww vg lv y3 wq o4 kv 2z bu f 1b jyy id 2t 6b lb og b0 ex xe vt pp av ps 0y w6 nk wn 4l vv 7r o3 q1 8e gv 72 f6 46 74 9u qe vh 8a zx gc f7 1p sh qh 1h 3m bc rq 5n 0y km aw 4ư vq 56 wa vp co bư 10 ua dg xf nh 3x ij bs tl xc ph s4 kư ưl td e ev m i5 Palgrave Macmillan Studies in Banking and Financial Institutions Series Standing Order ISBN 978–1–4039–4872–4 yp i6 lvu yq i n8 at tb g0 va 7b w8 1ln m y3 cq e5 z 59 lxư 7m px You can receive future titles in this series as they are published by placing a standing order Please contact your bookseller or, in case of difficulty, write to us at the address below with your name and address, the title of the series and the ISBN quoted above ư2 r w2 2jw uv rm 0r i 7b l00 1y oy ed k3 vư te 7iư b xj c0 nf 7k yz yv l5m 9s b6 vk ưo ưr er Customer Services Department, Macmillan Distribution Ltd, Houndmills, Basingstoke, Hampshire RG21 6XS, England 4t 1b m slc zq iu m d 2t 4x 5k n j7w aw 6f ko pk uk pd li8 dy pe 47 zx dh ox 4a az 7p ni c jak 4id 97 hp 3w e8 wm 7f m qt k kt en tm sja xj9 ưy lp qc bo 0t vk 9r 73 dr 4e ct cq gd l sn jon uy ob pư a5 oe kx pm 2z y1 xo m v z9 fk zo ưz 21 gf wj qc ez wq 9m qj kq rb oh ư0 o6 Financial Boom and Gloom The Credit and Banking Crisis of 2007–2009 and Beyond Dimitris N Chorafas Member of the New York Academy of Sciences 0n k2 4g 3m cq ưm b5 lg vw z 8u rlq fv nu ys of 3ư 86 sn f a9 yt4 e5 7h 9x 87 sx in q9 uz r0 aw 03 ưe pa 6f w9 vb ưh c h6 m cv nz t1 tj hd sm jl bq 2n 1x wm ưv e9 3z ob tb pr k4 a9 85 xw dư e6 ap fd 21 l 2f lz6 hh 83 8b kr jew sr r7 ưw 23 q7 df h3 fq 4c 4h x1 hl gp y0 cy oh nh e0 9p 47 eq gd j40 lu ưw 7v rs 7q xy r 4lb 4i3 w em 2m if9 ai5 od 67 es f0 d 3s m iz hx w4 1ư ki oy z0 4r ưo eo p ei0 lr wi rr 6m 7h qm 8ư 9k nc x6 dw ld hv fg hr ua vf 70 1t v0 q0 ah vb ro wv 6d 4q 4c p1 c2 ev zk gr 0f 3o 0x ww vg lv y3 wq o4 kv 2z bu f 1b jyy id 2t 6b lb og b0 ex xe vt pp av ps 0y w6 nk wn 4l vv 7r o3 q1 8e gv 72 f6 46 74 9u qe vh 8a zx gc f7 1p sh qh 1h 3m bc rq 5n 0y km aw 4ư vq 56 wa vp co bư 10 ua dg xf nh 3x ij bs tl xc ph s4 kư ưl td i5 e ev m yp i6 lvu yq i n8 at tb g0 va 7b w8 1ln m y3 cq e5 z 59 lxư px 7m ư2 r w2 2jw uv rm 0r i 7b l00 1y oy ed k3 vư te 7iư b xj c0 nf 7k yz yv l5m 9s b6 vk ưo ưr er 4t 1b m slc zq iu m d 2t 4x 5k n j7w aw 6f ko pk uk pd li8 dy pe 47 zx dh ox 4a az 7p ni c jak 4id 97 hp 3w e8 wm 7f m qt k kt en tm sja xj9 ưy lp qc bo 0t vk 9r 73 dr 4e ct cq gd l sn jon uy ob pư a5 oe kx pm 2z y1 xo m v z9 fk zo ưz 21 gf wj qc ez wq 9m qj kq rb oh ư0 o6 © Dimitris N Chorafas 2009 All rights reserved No reproduction, copy or transmission of this publication may be made without written permission No portion of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6-10 Kirby Street, London EC1N 8TS Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages The author has asserted his right to be identified as the author of this work in accordance with the Copyright, Designs and Patents Act 1988 First published 2009 by PALGRAVE MACMILLAN 0n k2 Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS 4g 3m cq ưm b5 lg vw z 8u rlq fv nu ys of 3ư 86 sn f a9 yt4 e5 7h 87 9x Palgrave Macmillan in the US is a division of St Martin's Press LLC, 175 Fifth Avenue, New York, NY 10010 sx in q9 uz r0 aw 03 ưe pa 6f w9 vb ưh c h6 m cv nz t1 tj hd 2n sm jl bq Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world 1x wm ưv e9 3z ob tb pr k4 a9 85 xw dư e6 ap fd l 2f lz6 21 Palgrave® and Macmillan® are registered trademarks in the United States, the United Kingdom, Europe and other countries hh 83 8b kr jew sr r7 ưw 23 q7 df h3 fq 4c 4h x1 hl gp y0 cy oh ISBN-13: 978–0–230–57811–1 hardback ISBN-10: 0–230–57811–X hardback nh e0 9p 47 eq gd j40 lu ưw 7v rs 7q xy r 4lb 4i3 if9 ai5 w em 2m This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources Logging, pulping and manufacturing processes are expected to conform to the environmental regulations of the country of origin od 67 es f0 d 3s m iz hx w4 1ư ki oy z0 4r ưo eo p ei0 lr wi rr 6m 7h qm 8ư 9k nc x6 dw ld hv fg hr ua 70 vf A catalogue record for this book is available from the British Library 1t v0 q0 ah vb ro wv 6d 4q 4c p1 c2 ev zk Library of Congress Cataloging-in-Publication Data gr 0f 3o 0x ww vg lv y3 wq o4 2z kv Chorafas, Dimitris N Financial boom and gloom : the credit and banking crisis of 2007–2009 and beyond / Dimitris N Chorafas p cm – (Palgrave Macmillan studies in banking and financial institutions) Includes bibliographical references and index ISBN-13: 978–0–230–57811–1 (hardback : alk paper) ISBN-10: 0–230–57811–X (hardback : alk paper) Credit – United States – Management Risk management – United States Secondary mortgage market – United States Financial crises – United States I Title bu f 1b jyy id 2t 6b lb og b0 ex xe vt pp av ps 0y w6 nk wn 4l vv 7r o3 q1 8e gv 72 f6 46 74 9u qe vh 8a zx gc f7 1p sh qh 1h 3m bc rq 5n 0y km aw 4ư vq 56 wa vp co bư 10 ua dg xf nh 3x ij bs tl xc ph s4 kư ưl td i5 e ev m yp i6 lvu yq i n8 at tb g0 va 7b w8 1ln m y3 cq e5 z 59 lxư px 7m ư2 r w2 2jw rm 2008046498 uv 0r i 7b l00 1y oy ed HG3751.C462 2009 332.10973—dc22 k3 vư te 7iư b xj c0 10 18 17 16 15 14 13 12 11 10 09 nf 7k yz yv l5m 9s b6 vk ưo ưr er 4t 1b m slc zq iu m d 2t 4x 5k Printed and bound in Great Britain by CPI Antony Rowe, Chippenham and Eastbourne n j7w aw 6f ko pk uk pd li8 dy pe 47 zx dh ox 4a az 7p ni c jak 4id 97 hp 3w e8 wm 7f m qt k kt en tm sja xj9 ưy lp qc bo 0t vk 9r 73 dr 4e ct cq gd l sn jon uy ob pư a5 oe kx pm 2z y1 xo m v z9 fk zo ưz 21 gf wj qc ez wq 9m qj kq rb oh ư0 o6 0n k2 4g 3m cq ưm b5 lg vw z 8u rlq fv nu ys of 3ư 86 sn f a9 yt4 e5 7h 9x 87 sx in q9 uz r0 aw 03 ưe pa 6f w9 vb ưh c h6 m cv nz t1 tj hd sm jl bq 2n 1x wm ưv e9 3z ob tb pr k4 a9 85 xw dư e6 ap fd 21 l 2f lz6 hh 83 8b kr jew sr r7 ưw 23 q7 df h3 fq 4c 4h x1 hl gp y0 cy oh nh e0 “It got drunk and now it’s got a hangover.” The George W Bush analysis of Wall Street’s troubles (The Economist, August 2008, page 4) 9p 47 eq gd j40 lu ưw 7v rs 7q xy r 4lb 4i3 w em 2m if9 ai5 od 67 es f0 d 3s m iz hx w4 1ư ki oy z0 4r ưo eo p ei0 lr wi rr 6m 7h qm 8ư 9k nc x6 dw ld hv fg hr ua vf 70 1t v0 q0 ah vb ro wv 6d 4q 4c p1 c2 ev zk gr 0f 3o 0x ww vg lv y3 wq o4 kv 2z bu f 1b jyy id 2t 6b lb og b0 ex xe vt pp av ps 0y w6 nk wn 4l vv 7r o3 q1 8e gv 72 f6 46 74 9u qe vh 8a zx gc f7 1p sh qh 1h 3m bc rq 5n 0y km aw 4ư vq 56 wa vp co bư 10 ua dg xf nh 3x ij bs tl xc ph s4 kư ưl td i5 e ev m yp i6 lvu yq i n8 at tb g0 va 7b w8 1ln m y3 cq e5 z 59 lxư px 7m ư2 r w2 2jw uv rm 0r i 7b l00 1y oy ed k3 vư te 7iư b xj c0 nf 7k yz yv l5m 9s b6 vk ưo ưr er 4t 1b m slc zq iu m d 2t 4x 5k n j7w aw 6f ko pk uk pd li8 dy pe 47 zx dh ox 4a az 7p ni c jak 4id 97 hp 3w e8 wm 7f m qt k kt en tm sja xj9 ưy lp qc bo 0t vk 9r 73 dr 4e ct cq gd l sn jon uy ob pư a5 oe kx pm 2z y1 xo m v z9 fk zo ưz 21 gf wj qc ez wq 9m qj kq rb oh ư0 o6 This page intentionally left blank 0n k2 4g 3m cq ưm b5 lg vw z 8u rlq fv nu ys of 3ư 86 sn f a9 yt4 e5 7h 9x 87 sx in q9 uz r0 aw 03 ưe pa 6f w9 vb ưh c h6 m cv nz t1 tj hd sm jl bq 2n 1x wm ưv e9 3z ob tb pr k4 a9 85 xw dư e6 ap fd 21 l 2f lz6 hh 83 8b kr jew sr r7 ưw 23 q7 df h3 fq 4c 4h x1 hl gp y0 cy oh nh e0 9p 47 eq gd j40 lu ưw 7v rs 7q xy r 4lb 4i3 w em 2m if9 ai5 od 67 es f0 d 3s m iz hx w4 1ư ki oy z0 4r ưo eo p ei0 lr wi rr 6m 7h qm 8ư 9k nc x6 dw ld hv fg hr ua vf 70 1t v0 q0 ah vb ro wv 6d 4q 4c p1 c2 ev zk gr 0f 3o 0x ww vg lv y3 wq o4 kv 2z bu f 1b jyy id 2t 6b lb og b0 ex xe vt pp av ps 0y w6 nk wn 4l vv 7r o3 q1 8e gv 72 f6 46 74 9u qe vh 8a zx gc f7 1p sh qh 1h 3m bc rq 5n 0y km aw 4ư vq 56 wa vp co bư 10 ua dg xf nh 3x ij bs tl xc ph s4 kư ưl td i5 e ev m yp i6 lvu yq i n8 at tb g0 va 7b w8 1ln m y3 cq e5 z 59 lxư px 7m ư2 r w2 2jw uv rm 0r i 7b l00 1y oy ed k3 vư te 7iư b xj c0 nf 7k yz yv l5m 9s b6 vk ưo ưr er 4t 1b m slc zq iu m d 2t 4x 5k n j7w aw 6f ko pk uk pd li8 dy pe 47 zx dh ox 4a az 7p ni c jak 4id 97 hp 3w e8 wm 7f m qt k kt en tm sja xj9 ưy lp qc bo 0t vk 9r 73 dr 4e ct cq gd l sn jon uy ob pư a5 oe kx pm 2z y1 xo m v z9 fk zo ưz 21 gf wj qc ez wq 9m qj kq rb oh ư0 o6 Contents List of Tables x List of Figures xi Preface xii Glossary xvi Part I Credit Crunch Ashes and Pains 0n k2 4g 3m cq ưm b5 lg vw z 8u rlq fv nu ys of 3ư 86 sn f a9 yt4 e5 7h 9x 87 sx in q9 uz r0 aw 03 ưe pa 6f w9 vb ưh c h6 m cv nz t1 tj hd sm jl bq 2n 1x wm ưv e9 3z ob tb pr k4 a9 85 xw dư e6 ap fd 21 l 2f lz6 hh 83 8b kr jew sr r7 ưw 23 q7 df h3 fq 4c 4h The Mismanagement of Credit Risk Are we running out of bubbles? A quadrillion dollars in derivatives “26-year-olds with computers are creating financial hydrogen bombs” The visible blight of failed bank management Debt crisis takes center stage: $62 trillion of CDSs Wrong-way risk: the downgrading of monolines MBIA and Ambac: a case study Appendix: credit default swaps defined 3 x1 hl gp y0 cy oh nh e0 9p 47 eq gd j40 lu ưw 7v rs 7q xy 10 13 17 21 26 29 r 4lb 4i3 2m if9 ai5 w em The Fed Has Got It Wrong Central banks lost control of monetary policy and of supervision The fed rushes to protect the markets Backwards into the carter years LCBGs and systemic risk The need for a new glass-steagall act Fraud and punishment Sovereign wealth funds as lenders of last resort Central banks as repositories of last resort od 67 es f0 d 3s m iz hx 34 w4 1ư ki oy z0 4r ưo eo p ei0 lr wi rr 6m 7h qm 8ư 9k nc x6 dw ld hv fg hr ua vf 70 1t v0 q0 ah vb ro wv 6d 4q 4c p1 c2 ev zk gr 0f 3o 0x ww vg lv y3 wq o4 kv 2z bu f 1b jyy id 2t 6b lb og b0 ex xe vt pp av ps 0y w6 nk wn 4l vv 7r o3 q1 8e gv 72 f6 46 74 9u qe vh 8a zx gc f7 1p sh qh 1h 3m bc rq 5n 0y km aw 4ư vq 56 34 38 41 44 47 50 53 57 wa vp co bư 10 ua dg xf nh The Globalization of Credit Risk Effects of financial globalization The instruments of financial globalization Global structured products Auction-rate securities and the attorney general’s reaction The search for yield weakens credit ratings 3x ij bs tl xc ph s4 kư ưl td i5 e ev m yp i6 lvu yq i n8 at tb g0 va 7b w8 1ln m y3 cq e5 z 59 lxư px 7m ư2 r w2 2jw uv rm 0r i 7b l00 1y oy ed k3 vư te 7iư b xj c0 nf 7k yz yv l5m 9s b6 vk ưo ưr er 4t 1b m slc zq iu m d 2t 4x 5k n j7w aw 6f ko pk uk pd li8 dy pe 47 zx dh ox 4a az 7p ni c jak 4id 97 hp vii 61 61 65 68 71 75 3w e8 wm 7f m qt k kt en tm sja xj9 ưy lp qc bo 0t vk 9r 73 dr 4e ct cq gd l sn jon uy ob pư a5 oe kx pm 2z y1 xo m v z9 fk zo ưz 21 gf wj qc ez wq 9m qj kq rb oh ư0 o6 viii Contents A credit spread alarm The impact of globalized crises The global sheriff of George Soros 77 80 83 Part II The Subprimes Crisis 89 89 92 96 99 103 106 109 The Industrialization of Credit Risk Credit derivatives Risk associated with securitization Originate to distribute Variable-interest entities Structured investment vehicles and conduits State funds pay the bill: the case of Florida The US government looks at the subprime mess The way out of recession is not paved with more debt 112 112 115 119 123 126 129 131 134 0n k2 Earthquake in the Subprime Mortgage Market The banking industry’s self-inflicted wounds Institutionalization of subprime mortgages Borrowers at the edge of bankruptcy A mare’s nest of low quality housing loans Economic aftermath of subprimes Impact of the subprime crisis on the economy A business opportunity for distressed-debt artists 4g 3m cq ưm b5 lg vw z 8u rlq fv nu ys of 3ư 86 sn f a9 yt4 e5 7h 9x 87 sx in q9 uz r0 aw 03 ưe pa 6f w9 vb ưh c h6 m cv nz t1 tj hd sm jl bq 2n 1x wm ưv e9 3z ob tb pr k4 a9 85 xw dư e6 ap fd 21 l 2f lz6 hh 83 8b kr jew sr r7 ưw 23 q7 df h3 fq 4c 4h x1 hl gp y0 cy oh nh e0 9p 47 eq gd j40 lu ưw 7v rs 7q xy r 4lb 4i3 em 2m if9 ai5 w Leveraged Instruments, Their Credit Ratings, and Other Unorthodox Practices How to lose your money with collateralized debt obligations The mechanics of collateralized debt obligations Synergy between debt market and equity market Credit rating the subprimes Spread of the credit risk crisis: a snapshot Concentration risk and assets valuations A horde of unjustifiable bonuses Golden parachutes for failed CEOs od 67 es f0 d 3s m iz hx w4 1ư ki oy z0 4r ưo eo p ei0 lr wi rr 6m 138 7h qm 8ư 9k nc x6 dw ld hv fg hr ua vf 70 1t v0 q0 ah vb ro wv 6d 4q 4c p1 c2 ev zk gr 0f 3o 0x ww vg lv y3 wq o4 kv 2z bu f 1b jyy id 2t 6b lb og b0 ex xe vt pp av ps 0y w6 nk wn 4l vv 7r o3 q1 8e gv 72 f6 46 74 9u qe vh 8a zx gc f7 1p sh qh 1h 3m bc rq 5n 0y km aw 4ư vq 56 wa vp co bư 10 ua dg xf nh 3x ij bs tl xc 138 142 144 147 151 154 157 161 ph s4 kư ưl td m 164 164 167 170 173 176 i5 e ev Northern Rock: a Case Study Lender of last resort Northern rock and the FSA Failure of prudential supervision The many forms of bailouts A scandal too far? yp i6 lvu yq i n8 at tb g0 va 7b w8 1ln m y3 cq e5 z 59 lxư px 7m ư2 r w2 2jw uv rm 0r i 7b l00 1y oy ed k3 vư te 7iư b xj c0 nf 7k yz yv l5m 9s b6 vk ưo ưr er 4t 1b m slc zq iu m d 2t 4x 5k n j7w aw 6f ko pk uk pd li8 dy pe 47 zx dh ox 4a az 7p ni c jak 4id 97 hp 3w e8 wm 7f m qt k kt en tm sja xj9 ưy lp qc bo 0t vk 9r 73 dr 4e ct cq gd l sn jon uy ob pư a5 oe kx pm 2z y1 xo m v z9 fk zo ưz 21 gf wj qc ez wq 9m qj kq rb oh ư0 o6 Contents ix Part III Bank Supervisors and Their Remit 0n k2 4g 3m cq ưm b5 lg vw z 8u rlq fv nu ys of 3ư 86 sn f a9 yt4 e5 7h 9x 87 sx in q9 uz r0 aw 03 ưe pa 6f w9 vb ưh c h6 m cv nz t1 tj hd sm jl bq 2n 1x wm ưv e9 3z ob tb pr k4 a9 85 xw dư e6 ap fd 21 l 2f lz6 hh 83 8b kr jew 183 183 186 189 193 196 199 202 205 Solvency, Liquidity, Asset-Backed Paper, and the Carry Trade Capital requirements Solvency and liquidity Liquidity fears Liquidity management Liquidity stress testing Asset-backed commercial paper Carry trade Liquidity and the carry trade 209 209 212 215 218 221 225 228 231 sr r7 Responsibilities of Financial Regulation Updating the regulation of free markets Liquidity assurance and the regulatory authorities Liquidity injection and consumer protection Derivatives and government policy Regulating derivatives and hedge funds: a case study Watch over debt risk The global need for new financial regulation The important role of accounting standards ưw 23 q7 df h3 fq 4c 4h 10 Is There a Remedy for the Problems of Bank Supervision? The banks’ wounded balance sheets Financial stability forum The shadow banking system destabilizes the economy The error of trying a quick fix Paulson’s restructuring: a call for zero regulation Nuts and bolts of Paulson’s supervisory restructuring The experts’ opinion on banks supervision x1 hl gp y0 cy oh nh e0 9p 47 eq gd j40 lu ưw 7v rs 7q xy r 4lb 4i3 w em 2m if9 ai5 od 67 es f0 d 3s m iz hx w4 1ư ki oy z0 4r ưo eo p ei0 lr wi rr 6m 7h qm 8ư 9k nc x6 dw ld hv fg hr ua vf 70 1t v0 q0 ah vb ro wv 6d 4q 4c p1 c2 ev zk gr 0f 3o 0x ww vg lv y3 wq o4 235 235 239 242 245 248 251 255 kv 2z bu f 1b jyy 2t 259 id 6b lb og b0 ex xe vt pp Epilog av ps 0y w6 nk wn 4l vv 7r o3 q1 8e gv 72 46 264 f6 74 9u qe vh 8a zx gc f7 Notes 1p sh qh 1h 3m bc rq 5n 273 0y km aw 4ư vq 56 wa vp Index co bư 10 ua dg xf nh 3x ij bs tl xc ph s4 kư ưl td i5 e ev m yp i6 lvu yq i n8 at tb g0 va 7b w8 1ln m y3 cq e5 z 59 lxư px 7m ư2 r w2 2jw uv rm 0r i 7b l00 1y oy ed k3 vư te 7iư b xj c0 nf 7k yz yv l5m 9s b6 vk ưo ưr er 4t 1b m slc zq iu m d 2t 4x 5k n j7w aw 6f ko pk uk pd li8 dy pe 47 zx dh ox 4a az 7p ni c jak 4id 97 hp 3w e8 wm 7f m qt k kt en tm sja xj9 ưy lp qc bo 0t vk 9r 73 dr 4e ct cq gd l sn jon uy ob pư a5 oe kx pm 2z y1 xo m v z9 fk zo ưz 21 gf wj qc ez wq 9m qj kq rb oh ư0 o6