Restoring financial stability : how to repair a failed system

Author(s)

• Acharya, Viral V.
• Richardson, Matthew

Bibliographic Information

Restoring financial stability : how to repair a failed system

Viral V. Acharya and Matthew Richardson

（Wiley finance series）

John Wiley & Sons, c2009

Note

Includes bibliographical references and index

Description and Table of Contents

Description

An insightful look at how to reform our broken financial system The financial crisis that unfolded in September 2008 transformed the United States and world economies. As each day's headlines brought stories of bank failures and rescues, government policies drawn and redrawn against the backdrop of an historic Presidential election, and solutions that seemed to be discarded almost as soon as they were proposed, a group of thirty-three academics at New York University Stern School of Business began tackling the hard questions behind the headlines. Representing fields of finance, economics, and accounting, these professors-led by Dean Thomas Cooley and Vice Dean Ingo Walter-shaped eighteen independent policy papers that proposed market-focused solutions to the problems within a common framework. In December, with great urgency, they sent hand-bound copies to Washington. Restoring Financial Stability is the culmination of their work. Proposes bold, yet principled approaches-including financial policy alternatives and specific courses of action-to deal with this unprecedented, systemic financial crisis Created by the contributions of various academics from New York University's Stern School of Business Provides important perspectives on both the causes of the global financial crisis as well as proposed solutions to ensure it doesn't happen again Contains detailed evaluations and analyses covering many spectrums of the marketplace Edited by Matthew Richardson and Viral Acharya, this reliable resource brings together the best thinking of finance and economics from the faculty of one of the top universities in world.

Table of Contents

Foreword xi Acknowledgments xiii Prologue: A Bird's-Eye View The Financial Crisis of 2007-2009: Causes and Remedies 1 Viral V. Acharya, Thomas Philippon, Matthew Richardson, and Nouriel Roubini Part One Causes of the Financial Crisis of 2007-2009 57 Matthew Richardson Chapter 1 Mortgage Origination and Securitization in the Financial Crisis 61 Dwight Jaffee, Anthony W. Lynch, Matthew Richardson, and Stijn Van Nieuwerburgh Chapter 2 How Banks Played the Leverage Game 83 Viral V. Acharya and Philipp Schnabl Chapter 3 The Rating Agencies: Is Regulation the Answer? 101 Matthew Richardson and Lawrence J. White Part Two Financial Institutions 117 Matthew Richardson Chapter 4 What to Do about the Government-Sponsored Enterprises? 121 Dwight Jaffee, Matthew Richardson, Stijn Van Nieuwerburgh, Lawrence J. White, and Robert E. Wright Chapter 5 Enhanced Regulation of Large, Complex Financial Institutions 139 Anthony Saunders, Roy C. Smith, and Ingo Walter Chapter 6 Hedge Funds in the Aftermath of the Financial Crisis 157 Stephen J. Brown, Marcin Kacperczyk, Alexander Ljungqvist, Anthony W. Lynch, Lasse H. Pedersen, and Matthew Richardson Part Three Governance, Incentives, and Fair Value Accounting Overview 179 Viral V. Acharya and Rangarajan K. Sundaram Chapter 7 Corporate Governance in the Modern Financial Sector 185 Viral V. Acharya, Jennifer N. Carpenter, Xavier Gabaix, Kose John, Matthew Richardson, Marti G. Subrahmanyam, Rangarajan K. Sundaram, and Eitan Zemel Chapter 8 Rethinking Compensation in Financial Firms 197 Gian Luca Clementi, Thomas F. Cooley, Matthew Richardson, and Ingo Walter Chapter 9 Fair Value Accounting: Policy Issues Raised by the Credit Crunch 215 Stephen G. Ryan Part Four Derivatives, Short Selling, and Transparency 229 Viral V. Acharya Chapter 10 Derivatives: The Ultimate Financial Innovation 233 Viral V. Acharya, Menachem Brenner, Robert F. Engle, Anthony W. Lynch, and Matthew Richardson Chapter 11 Centralized Clearing for Credit Derivatives 251 Viral V. Acharya, Robert F. Engle, Stephen Figlewski, Anthony W. Lynch, and Marti G. Subrahmanyam Chapter 12 Short Selling 269 Menachem Brenner and Marti G. Subrahmanyam Part Five The Role of the Federal Reserve 277 Thomas F. Cooley and Thomas Philippon Chapter 13 Regulating Systemic Risk 283 Viral V. Acharya, Lasse H. Pedersen, Thomas Philippon, and Matthew Richardson Chapter 14 Private Lessons for Public Banking: The Case for Conditionality in LOLR Facilities 305 Viral V. Acharya and David K. Backus Part Six The Bailout 323 Thomas F. Cooley and Thomas Philippon Chapter 15 The Financial Sector Bailout: Sowing the Seeds of the Next Crisis? 327 Viral V. Acharya and Rangarajan K. Sundaram Chapter 16 Mortgages and Households 341 Andrew Caplin and Thomas F. Cooley Chapter 17 Where Should the Bailout Stop? 353 Edward I. Altman and Thomas Philippon Part Seven International Coordination 363 Chapter 18 International Alignment of Financial Sector Regulation 365 Viral V. Acharya, Paul Wachtel, and Ingo Walter About the Authors 377 Index 381

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Details

• NCID: BA89648471
• ISBN:
  • 9780470499344
• LCCN: 2009004115
• Country Code: us
• Title Language Code: eng
• Text Language Code: eng
• Place of Publication: Hoboken, N.J.
• Pages/Volumes: xiii, 401 p.
• Size: 24 cm
• Classification:
  • LCC : HG181
  • DC22 : 339.50973
• Subject Headings:
  • LCSH : Finance -- United States
  • LCSH : Financial crises -- Government policy -- United States
  • LCSH : Banks and banking -- United States
  • LCSH : Financial services industry -- United States
  • LCSH : United States -- Economic conditions -- 2001-
• Parent Bibliography ID:
  • BA5197584X