systemic risk and the redesign of financial regulation

... concerned about the default risk of the banks as they were about the default risk of Fannie and Freddie As we discuss toward the end of the chapter (when we consider the ‘‘too big to fail’’ theory as ... banks, the relevant laws were the Basel I accords of 1988, which were implemented in the United States in 1991 by the FDIC, the Federal Reserve, the Of ce of the Comptroller of the Currency, and the ... limit on the supply of the tranches that were most in demand the AAA tranches—because the starting points of the rating models were predictions of the rate of default on the entire pool Had the rating...

Ngày tải lên: 03/11/2014, 16:26

... using the assumption of 100 % recovery of the gold element and of a 50 % recovery of the rest in the partially collateralised structure Calculate the risk premium by multiplying the probability of ... in the case of unsecured debt is then 50 % A check of the calibration of the calculations delivers the following: the total recovery equals 50 %; the annual likelihood of default is 16 %, therefore ... discussion of the comparability of the attitudes towards the European Central Bank and the Euro) Trust in the European Central Bank Throughout the Worldwide Financial Crisis 31 The first group of studies...

Ngày tải lên: 01/11/2014, 12:17

... (Goetz and Shenoi 2008), the protection of intellectual property of firms and countries (Andrijcic and Horowitz 2006), the financial integrity of investment firms (Jolly 2008), and the control of ... main safeguards in place, and concludes that there may be a need to reconsider some of them in view of the growing role of nonbanks and of the global reach of risks in the electronic era Introduction ... The risk elements are then viewed in the context of other company-specific factors, such as the state of current control (i.e., the security baseline); the sophistication of vulnerabilities and...

Ngày tải lên: 18/10/2013, 17:15

... Benefits the owners of a bank by making their investment safe • Costly to owners of a bank because the higher the bank capital, the lower the return on equity • Choice depends on the state of the ... Capital $1M • The cost of selling securities is the brokerage and other transaction costs $90M $10M Liquidity Management: Bank of Canada Advances Borrow $9 million from the Bank of Canada Assets ... in interest rates on income but also on net worth of the institution • Duration Analysis examines the sensitivity of the market value of the financial institution’s net worth to changes in interest...

Ngày tải lên: 05/01/2014, 16:57

... in the education variables, only the direct effects of the years of schooling of the head of the household, the years of schooling of the money manager and the average schooling of the heads of ... Sixty-eight percent of the banks in the Northeast and 81% of the banks in the Central region make loans, while only 35% of the banks in the Northeast and 53% of the banks in the Central region offer savings ... members of the village The accuracy of financial statements, the nature of the savings and lending services that are offered and other bank policies may all depend on the skill and education of the...

Ngày tải lên: 06/03/2014, 10:20

... the Post Office, the High Street banks and other financial institutions The mission of the universal bank will be to tackle the issue of financial exclusion by providing a wide range of financial ... ING Barings is also the fifty per cent owner of the Netherlands Post With the Postbank and the Netherlands Post under the same ownership, the two institutions can again tap the synergies possible ... (until the advent of the Russo-Japanese War) The Japanese model has also had an impact on the Republic of Korea, Taiwan Province of China and many other ar- 19 Postal Savings and the Provision of Financial...

Ngày tải lên: 15/03/2014, 09:20

... process at the FASB is part of the mission of the organization, which is, ―to establish and improve standards of financial accounting and reporting for the guidance and education of the public, ... establish and improve standards of financial accounting and reporting for the guidance and education of the public, including issuers, auditors, users of financial information‖(FASB, 2010a) The United ... country and ultimately the world, especially in light of the globalization of financial accounting standards by the International Accounting Standards Board (IASB) The number of organizations and...

Ngày tải lên: 01/06/2014, 13:59

... help professionals understand their patients' risk, and patients to understand their own risk Broadly these can be aggregated under the headings of perception (influences on how individuals and ... relevance to the matter in hand, and which may be used as the basis of future outcomes) These broad areas are not independent of each other, but it helps understanding to try to organise the many ... study was about whether using the test in the emergency room rather than elsewhere in the hospital was acceptable, given that it had a very small level of risk The trivial level of risk was presented...

Ngày tải lên: 09/08/2014, 10:23

... TFs and putative, as yet uncharacterized regulators We analyzed the history of each of the global regulators, and of a sample of each of the other types of regulators (see Figure and Materials and ... recently We conclude that the joint regulation of dctA by ArcA and DcuR must have evolved after the transfer of dcuR and dctA into the E coli lineage, and long after the divergence of arcA from dcuR ... 5% to 8% of the interactions actually evolved by duplication (The uncertain 3% represent interactions in which the relative age of the duplication and of the regulation was unclear, and operon...

Ngày tải lên: 14/08/2014, 08:20

... accompanied the collapse of Enron, WorldCom and Tyco in the accounting scandals at the turn of the century The falsification of the efficient market hypothesis and the belated acceptance that the pursuit ... 1989, they want to take action against the guardians of the system that failed them And the more they suffer, the more likely it is that they will demand radical change, and the more likely that the ... a function of the institutional and normative structure of a system of regulation and of the underlying legal system on which it is superimposed It is also a function of the mix of risk control...

Ngày tải lên: 01/11/2014, 13:26

... with and without a central bank, as we can for the United States But Forrest Capie, the official historian of the Bank of England, and other British financial historians argue that the Bank of ... served as the central reserves of the expanding US banking system The financial panic of 1907, a major embarrassment because the United States by then had become the world’s leading and most dynamic ... second central bank The three central banks in the nation’s history (top to bottom): The Bank of the US, the Second Bank of the US and the Federal Reserve Fed, opened for business, the United States...

Ngày tải lên: 05/11/2014, 11:24

... by the magnitude of the slope coefficient α1) is not independent of the accounting choices of management The opportunistic use of accruals tends to reduce the slope coefficient, while the use of ... the quality of the financial information reported by management (Dopuch and Simunic 1982; Watts and Zimmerman 1986) and improve the quality of information that investors have about the value of ... terms of book value of total assets) The sample is further restricted to exclude observations falling in the extreme percent of the entire distribution of variables used to test Hypothesis and...

Ngày tải lên: 06/01/2015, 19:43

Ngày tải lên: 06/01/2015, 19:49

... crisis focuses on the transmission and not the resolution of the crisis Therefore, the main contribution of the thesis is to offer new theoretical and empirical insight on the role of a centralised ... even though the institutional structures of Malaysia and Thailand are different from that of the United States in the 1930s and 1990s and that of Japan’s in the1 990s, the nature of the financial ... Malaysia and Thailand to find evidence of the existence of credit crunch in the early years of the crisis Section reviews the road to recovery in Malaysia and Thailand and explains the recovery in the...

Ngày tải lên: 12/09/2015, 08:18

... holders of the mezzanine tranche get nothing If the return on the mortgage portfolio lies between the claim of the senior tranche and the sum of the claims of the senior and mezzanine tranches, the ... http://www.coll.mpg.de Systemic Risk in the Financial Sector: An Analysis of the Subprime-Mortgage Financial Crisis Martin Hellwig Abstract The paper analyses the causes of the current crisis of the global financial ... holders of the mezzanine tranche get the entire excess of the return over the claim of the senior tranche and share it according to the shares of the mezzanine tranche that they holds If the return...

Ngày tải lên: 17/02/2014, 21:20

... issue, the ability of member states of the Eurozone to leave the monetary union, either voluntarily or involuntarily The presentation of the two facets of the crisis, the financial and the sovereign ... examples of reform, exploring the reasons behind policy changes, and enquires into the origin (and likely destination) of current shifts in our perception of the role of law and the place of the state ... into the will of the market? One of the key problems we have in understanding the relationship between the state and the market is the obscuring effects of ‘economism’ We can define economism as the...

Ngày tải lên: 04/11/2014, 05:30

... creating and advancing liquidity to producers; along the circuit, the financial system governs the supply and demand of funds and, at the end of the process, it determines the condition for the closure ... conceptualization and recent evidence CTF clarifies the role of the financial system in the functioning of a monetary market economy of production At the start of the circuit process, the financial system ... the degree and nature of competition both within the banking system and between banks and investment financial institutions Promotion of competition has to go hand in hand with the need for financial...

Ngày tải lên: 24/10/2012, 09:33

... zero even at the 95% level in Canada, Finland, the Netherlands, Norway, Sweden, Switzerland, the UK and the US Moreover, while in some countries, (including Finland, the UK and the US) residential ... also for these countries the existence of cointegration could not be rejected We therefore specify the VAR models in the level of the variables Nevertheless, we neither impose the number of cointegrating ... Japan, the Netherlands, Norway, Spain, Sweden, Switzerland, the UK and the US The sample starts in 1986 in order to avoid the more turbulent, higher inflation period that ended in the first half of...

Ngày tải lên: 24/10/2012, 09:40

... than the level of HLA-DR in the cell lysates (5ul of a in 10 dilution, from x 106 PBMC) The shed HLA-DR therefore seemed to represent a small fraction of the total HLA-DR of the cell, however the ... expression of both the percentage of monocytes expressing HLA-DR and the density of HLA-DR expression have been observed as a feature of sepsis [4;5;7;8;22-25] Only recently have the possible ... regulate HLA-DR at the level of transcription To investigate whether a post-translational modification was a mechanism involved in the regulation of HLA-DR, as described in the study of Fumeaux et...

Ngày tải lên: 03/11/2012, 09:57

... Risk and Term Structure of Interest Rates • The risk structure of interest rates looks at bonds with the same term to maturity and different interest rates • The term structure of interest ... over the life of the long-term bond • Buyers of bonds not prefer bonds of one maturity over another; they will not hold any quantity of a bond if its expected return is less than that of another ... n The n-period interest rate equals the average of the one-period interest rates expected to occur over the n-period life of the bond Expectations Theory • Explains why the term structure of...

Ngày tải lên: 05/01/2014, 16:56