Financial Regulation after the Global Recession

Cover......Page 1
Contents......Page 8
List of Tables......Page 11
List of Abbreviations......Page 12
Acknowledgments......Page 15
Introduction, Scope, and Content......Page 16
The first best of efficiency and satisfaction......Page 20
The theory of second best......Page 22
The public interest view......Page 23
Imperfect information......Page 24
Government failure......Page 26
Transactions costs and property rights......Page 27
The new institutional economics......Page 29
The economic theory of regulation......Page 30
The view of disclosure and regulation......Page 33
The political economy of the regulatory state......Page 34
Contrasts of public and private interest views......Page 35
Finance, efficiency, and growth......Page 37
Summary......Page 41
Appendix: Security prices and cost/benefit analysis......Page 42
Approaches to bank and financial regulation......Page 45
Banks versus finance......Page 46
Prudential and systemic regulation......Page 47
Functional and structural finance......Page 49
The law and finance view......Page 53
Monitoring and diversification......Page 54
Liquidity transformation......Page 56
Housing finance......Page 57
Securitization and credit-risk transfer......Page 63
Bank capital theory and requirements......Page 67
International capital requirements......Page 69
Deposit insurance......Page 71
Political economy......Page 73
Summary......Page 76
Banking market organization......Page 78
Competition and productivity......Page 79
Bank concentration......Page 82
The Federal Reserve System and US regulators and supervisors......Page 84
The European Central Bank......Page 92
The Bank of Japan......Page 95
The Bank of England......Page 96
General principles of central banking......Page 99
Central banking in the United Kingdom......Page 100
Monetary policy, income, and prices......Page 102
Summary......Page 105
Universal and specialized banking......Page 106
The political economy of securities legislation......Page 110
Economic analysis of Glass-Steagall......Page 111
The Gramm-Leach-Bliley Financial Modernization Act......Page 113
Hedge funds......Page 116
Corporate governance......Page 124
Remuneration......Page 128
Corporate law......Page 130
Summary......Page 135
The SEC and self-regulatory organizations......Page 136
The Financial Services Authority......Page 142
Proposals of capital market regulators......Page 145
The Sarbanes-Oxley Act of 2002......Page 148
The law......Page 149
Economic evaluation......Page 153
Corporate governance and performance......Page 155
Gatekeepers......Page 158
Regulation and the choice of exchange listing......Page 162
Summary......Page 164
The New Deal......Page 165
What caused the credit crisis and global recession?......Page 170
The instruments of monetary policy......Page 172
The Troubled Assets Relief Program......Page 177
Financial Stability Plan......Page 179
Mortgage modification......Page 181
Fiscal policy......Page 182
Liquidity guarantee......Page 183
The Swedish bank workout......Page 185
Regulation......Page 186
Summary......Page 188
Conclusion......Page 190
Notes......Page 193
H......Page 218
S......Page 219