Connectedness and contagion : protecting the financial system from panics / Hal S. Scott.

Format:

Book

Author/Creator:

Scott, Hal S., author.

Language:

English

Subjects (All):

Financial crises--History--21st century.

Financial crises.

Global Financial Crisis, 2008-2009--Government policy.

Global Financial Crisis, 2008-2009.

Government policy.

History.

Genre:

History.

Physical Description:

xxi, 416 pages ; 24 cm

Place of Publication:

Cambridge, Massachusetts : The MIT Press, [2016]

Contents:

Acknowledgments

Introduction

Connectedness, contagion, and correlation : definitions and a review of the economic literature

The concept of connectedness

The concept and history of contagion

The concept of correlation

Connectedness in the crisis

Asset connectedness : Lehman and AIG

Liability connectedness : money market funds and tri-party repo market

The Dodd-Frank Act policies to address connectedness

Contagion

Contagion in the 2008 crisis : the run on the non-bank sector, "shadow banks"

The history of lender of last resort in the United States

Dodd-Frank restrictions on the lender of last resort power

Comparison of LLR powers of fed with Bank of England, European Central Bank, and Bank of Japan

Strengthening the LLR powers of the fed

Liability insurance and guarantees

Insuring money market funds

Ex-ante policies to avoid contagion : capital, liquidity, resolution, money market mutual fund reform, and limits on short-term funding

Capital requirements : Basel III framework

Liquidity requirements

Bank resolution procedures, contingent capital (CoCos), and bail-ins

Dodd-Frank orderly liquidation for non-bank SIFIs (including bank holding companies)

Living wills

Money market mutual fund reform

The dependence of the financial system on short-term funding

Government crowding out of private issuance of short-term debt

Public capital injections into insolvent financial institutions, i.e "bailouts"

Capital purchase program and other TARP support programs

Criticisms of bailouts generally

Specific criticism of tarp

Standing bailout programs

Conclusion

Notes

Index.

Notes:

Includes bibliographical references and index.

ISBN:

9780262034371

0262034379

OCLC:

934100087