Managing Risk in the Financial System

Edited by John Raymond LaBrosse, Patterson & LaBrosse Financial Consultants Ltd, Canada and Honorary Visiting Fellow, School of Law, University of Warwick, Rodrigo Olivares-Caminal, Chair in Banking and Finance Law, Centre for Commercial Law Studies, Queen Mary University of London, and Dalvinder Singh, School of Law, University of Warwick, UK

Contents:

Foreword: The 2010 Banking Law Symposium on Managing Systemic Risk
Charles Enoch

Special Address: The Deposit Insurer’s Role in Transitioning from a Government Deposit Guarantee
Jean Pierre Sabourin

Preface: It Has Been ‘A Hard Day’s Night’
John Raymond LaBrosse, Rodrigo Olivares-Caminal and Dalvinder Singh

PART I: SYSTEMIC RISK
1. Investor Behaviour in the Period Before the 2007–08 Financial Crisis
Richard J. Rosen

2. The Nature of Systemic Risk
Jack Selody

3. The Government as Guarantor of Last Resort: Benefits, Costs and the Case for Premium Charges
Sebastian Schich

4. The Troubled Asset Relief Program: Has Forbearance as Far as the Eye Can See Saved the US Economy?
Gillian G.H. Garcia

5. Why is the Canadian Banking System so Remarkably Stable? A Comparative Analysis with the US
Jean Roy, Rima Turk-Ariss and Yenni Redjah

6. Systemic Contingent Claim Analysis – A Model Approach to Systemic Risk
Dale F. Gray and Andreas A. Jobst

7. Tax and the City: The UK’s Proposals for a Bank Levy
John Snape

PART II: SOVEREIGN DEBT
8. Iceland’s Financial Disaster and its Fiscal Impact
Arnór Sighvatsson and Gunnar Gunnarsson

9. The Greek Tragedy: Is There a Deus ex Machina?
Ioannis Kokkoris, Rodrigo Olivares-Caminal and Kiriakos Papadakis

10. Restructuring a Nation’s Debt
Lee C. Buchheit and Mitu Gulati

PART III: ADDRESSING THE PROBLEM OF ‘TOO-BIG-TO-FAIL’
11. Firm Stability and System Stability: The Regulatory Delusion
Geoffrey Wood with Ali Kabiri

12. ‘Living Wills’: Putting the Caboose Before the Engine and Designing a Better Engine
George G. Kaufman

13. Finding a Solution to the ‘Too-Big-To-Fail’ Problem
Arthur E. Wilmarth, Jr.

14. ‘Too-Big-To-Fail’ – Can Alternative Resolution Regimes Really Remedy Systemic Risk in Large Financial Institutions’ Insolvency?
Jens-Hinrich Binder

15. To Divest or Not to Divest: That is the Question...
Ioannis Kokkoris

PART IV: CROSS-BORDER ISSUES
16. Resolving Large Complex Financial Institutions Within and Across Jurisdictions
Robert R. Bliss and George G. Kaufman

17. From Consolidated Supervision to Consolidated Resolution
Rosa M. Lastra and Rodrigo Olivares-Caminal

18. Creating an EU-Level Supervisor for Cross-border Banking Groups: Issues Raised by the US Experience with Dual Banking
Larry D. Wall, María J. Nieto and David G. Mayes

PART V: PRUDENTIAL REGULATION
19. Capital and Liquidity Reform – A New Global Agenda
George A. Walker

20. Basel II to Basel III: A Great Leap Forward?
Imad Moosa

PART VI: COUNTRY CASE STUDIES
21. The US Architecture of Bank Regulation and Supervision: Recent Reforms in their Historical Context
Dalvinder Singh

22. An Evaluation of the Canadian Financial Safety Net During the Global Financial Crisis
John Raymond LaBrosse and James F. McCollum

23. Financial Safety Net Reform in Nigeria
Ganiyu Ogunleye

24. Islamic Deposit Insurance System: The Malaysian Model
Khairuddin Hj Arshad

25. Managing Financial Risk: The Precautionary Principle and Protecting the Public Interest in the UK
John F. McEldowney

Index