This paper shows that the liability classes most likely to exhibit evidence of market discipline during the recent financial crisis were uninsured depositors, insured depositors, and general creditors. We evaluate the FDIC's expectations about losses to creditors at banks that failed between...

Based on a review of international and regional responses to the global financial and economic crisis and its implications for finance in Asia, Douglas Arner and Lotte Schou-Zibell draw lessons for Asian financial systems with regard to the scope of regulation; financial standards; supervision,...

In this paper, we construct a simple model designed to capture four widely held views about financial crises: [1] Interconnectedness among financial institutions (banks) can play a major role in precipitating systemic financial crises. [2] It does so by introducing loan-portfolio opacity,...

The losses reported by companies and financial institutions caused enormous alarm and concern in society, as well as debate and confusion on the appropriate use of derivatives instruments. Were derivatives responsible for these losses or was it simply their poor management? The fact is that...

The financial crisis has brought about dramatic consequences for economies and societies. Questions emerge about responsibility for the crisis and, implicitly or explicitly irresponsibility; the obligations to take responsibility for the costs and other adverse effects of the recession; and the...