Comment on Llewellyn’s “Some Lessons for Regulation from Recent Bank Crises”

  • Jeffrey R. Shafer


The subject of what lessons to draw from recent systemic financial crises in which banks played a central role is extremely important. Indeed, it may be the most important issue to address in attempting to build a world in which the benefits of full participation in competitive global financial markets, especially by emerging economies with great untapped economic potential, can be secured without catastrophic disruption. David Llewellyn sketches, but sketches convincingly, I believe, the case for putting the banking system at the heart of virtually all of the major economic disruptions of the last 20 years in both the most advanced and the emerging economies.


Banking System Moral Hazard Hedge Fund Capital Requirement Financial Distress 
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  2. Schumpeter, J.A. (1943) Capitalism, Socialism and Democracy. Republished by Unwin Paperbacks, London, 1987.Google Scholar
  3. Shafer, J.R. (1987) “Managing Crises in the Emerging Financial Landscape.” OECD Economic Studies 9: 55–77.Google Scholar

Copyright information

© Springer Science+Business Media New York 2000

Authors and Affiliations

  • Jeffrey R. Shafer
    • 1
  1. 1.Salomon Smith BarneyNew YorkUSA

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