Advertisement

Managing the Crisis, Exit and Requirements of Reform

  • Adrian Blundell-Wignall
  • Paul Atkinson
  • Caroline Roulet
Chapter

Abstract

The authors set out how all crises should be managed according to four key steps and contrast this with what authorities actually did in different jurisdictions following 2008 (showing the USA to be closer to the mark than Europe). They raise two questions that have occupied policy makers since then: how to exit from emergency measures and what reforms are needed. The authors present and analyse the different proposals including inter alia: dealing with too big to fail; improving corporate governance; ensuring capital adequacy; and separating investment and deposit banking. Based on observed facts about the crisis, they present a number or a priori ideas about capital regulation and bank business models, setting the scene for a fuller discussion based on empirical evidence in subsequent chapters.

References

  1. Bagehot, W. (1873). Lombard Street: A Description of the Money Market. New York: Scribner and Sons.Google Scholar
  2. Blundell-Wignall, A. (2013, March 21). Cyprus: Further Compressing the Coiled Spring. OECD Insights.Google Scholar
  3. Brown, K., & Enrich, D. (2008, November 29). Rubin Under Fire Defends His Role at Citi. Wall Street Journal.Google Scholar
  4. EBA. (2016). Recommendation on Harmonisation of Covered Bond Frameworks in the EU. Brussels.Google Scholar
  5. FHFA. (2017, August 7). Dodd-Frank Act: Stress Test Results: Severely Adverse Scenario.Google Scholar
  6. FOMC. (2007). Meeting of the Federal Open Market Committee on August 7.Google Scholar
  7. Gurría, A. (2008, October 11). Statement by the Secretary-General of the OECD, before International Monetary and Financial Committee, Washington, DC.Google Scholar
  8. Hoenig, T. (2016, November 9). Strengthening Global Capital: An Opportunity Not to Be Lost—Remarks by FDIC Vice Chairman Thomas M. Hoenig to the 22nd Annual Risk US Conference, New York.Google Scholar
  9. IMF. (2007). Staff Report on the United States. Washington, DC.Google Scholar
  10. Lumpkin, S. (2008). Resolutions of Weak Institutions: Lessons Learned from Previous Crises. OECD Journal Financial Market Trends, 2008(1), 1–42. Google Scholar
  11. OECD. (2009a). The Financial Crisis: Reform and Exit Strategies. Paris: OECD Publishing. Available at: www.oecd.org/dataoecd/55/47/43091457.pdf.
  12. OECD. (2009b, June). Corporate Governance and the Financial Crisis: Key Findings and Main Messages. Paris: OECD Publishing.Google Scholar
  13. Shigehara, K., & Atkinson, P. (2011). Surveillance by International Institutions: Lessons from the Global Financial and Economic Crisis (Economics Department Working Paper No. 860). Paris: OECD.Google Scholar
  14. Turner, A. (2009, March). The Turner Review: A Regulatory Response to the Global Banking Crisis (Vol. 7). London: Financial Services Authority.Google Scholar

Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Adrian Blundell-Wignall
    • 1
  • Paul Atkinson
    • 2
  • Caroline Roulet
    • 3
  1. 1.University of Sydney and OECD (consultant advisor to the Secretary General, and former Director of the Financial and Enterprise Affairs Directorate)ParisFrance
  2. 2.NHA Economics, Ltd.ParisFrance
  3. 3.Organisation for Economic Co-operation and DevelopmentParisFrance

Personalised recommendations