The fall of the house of credit : what went wrong in banking and what can be done to repair the damage? / Alistair Milne.

Format:

Book

Author/Creator:

Milne, Alistair, author.

Language:

English

Subjects (All):

Banks and banking--Corrupt practices.

Banks and banking.

Bankers--Malpractice.

Bankers.

Bank failures.

Financial crises.

Credit.

Physical Description:

1 online resource (xiv, 366 pages) : digital, PDF file(s).

Place of Publication:

Cambridge : Cambridge University Press, 2009.

Language Note:

English

Summary:

How was it possible for problems in one relatively small sector in the global financial system - the American sub-prime mortgage market - to lead to the most serious economic crisis in living memory? In this book, Alistair Milne untangles the complex world of modern banking and examines solutions to the crisis. He shows how the banks misused their ability to securitize loans and, by borrowing short and lending long, exposed themselves to exceptional risks when asset prices started to fall. But it has been above all a collapse in trust and confidence, rather than poor lending decisions, which has fuelled the crisis. Despite all the talk of 'toxic' assets, the book argues that most assets are sound and can be repaid. The imperative is to restore confidence through collective action involving asset purchases, guarantees and recapitalization. Failure to do so will mean that taxpayers will be carrying a crippling tax burden for generations to come.

Contents:

1. Where did all the money go? : An analysis of the causes and cure of the current global banking crisis

2. Build-up, meltdown and intervention

3. We have been here before, haven't we?

4. A basic funding tool

the tranched mortgage-backed security

5. Using tranching to make short-term transaction profits

6. Borrowing short and lending long : the illusion of liquidity in structured credit

7. The levees break

8. The flood of losses

9. Central banks and money markets

10. The run on the world's banks

Conclusions : repairing the house of credit.

Notes:

Title from publisher's bibliographic system (viewed on 05 Oct 2015).

ISBN:

1-107-19381-8

1-282-31666-4

9786612316661

0-511-59319-8

0-511-59624-3

0-511-59226-4

0-511-59584-0

0-511-59512-3

OCLC:

526144819