PPT-The Financial Crisis Class 6- The Failure of Regulation?

November 6 2010 We talked about the economic side of things Macro The housing bubble the stock market crash and govt response Micro What derivatives are and the role they played in the crisis. Appendix The Financial Crisis: The Failure of Financial Services In the late 2000s, the United States, and indeed the world, experienced the worst financial crisis since the 1930s and the Great De problem . or solution?. Forrest Capie. Madrid 2015. Trust and regulation. What response to a crisis?. Regulate – recent crisis/crises. Deregulate – 19. th. century crises. Depends on trust. David Hume: trust better than legal exaction . Organised. by . Centre for Banking Studies, Central Bank of Sri Lanka . and . International Development Economics Associates (IDEAs) . 22 – 26 November 2011, Colombo. “. The Dodd-Frank Bill . and . Financial Regulation. Lesson. 9. LEARNING OBJECTIVES. After studying this . lesson, . you should be able to:. 9.1. 9.2. 9.3. Explain what financial crises are and what causes them. Understand the financial crisis that occurred during the Great Depression. Jeff Gordon and Colin Mayer. Avalanche of New . Corporate Governance Proposals. UK – Financial Reporting Council corporate governance and stewardship codes; Walker report on corporate governance in banks and other financial institutions. World Economy and Finance Programme. London, 28 January. Professor Justin O’Brien. Faculty of Law. University of New South Wales, Sydney. Centre for Applied Philosophy and Public Ethics . The Australian National University. Homework: P. 591 #1. Financial System 101. Channels . funds from borrowers to lenders. . Maturity transformation. . Pools . risk for those who are risk averse. . Allows for diversification.. Equity . October 16, 2010. House prices rose rapidly from 2000 to 2006. Subprime mortgages expanded rapidly as well. Increase in house prices slowed down in 2007. Households with excessive debt began to face problems. Joseph E. Stiglitz. The Crisis in Brief . Excess credit fed a housing bubble. Problems exacerbated by poorly designed mortgages (low doc “liar loans,” zero or negative amortization loans, variable rate mortgages, teaser rates). What were the contributing factors to the financial crisis?. How did the crisis begin?. What did the government do in response?. We focused mostly on big pictures. Discussion so far…. Dictionary definition: “financial instrument whose value is derived from one or more other underlying assets”. October 16, 2010. House prices rose rapidly from 2000 to 2006. Subprime mortgages expanded rapidly as well. Increase in house prices slowed down in 2007. Households with excessive debt began to face problems. This report summarizes the discussions from the third joint annual conference by Oliver Wyman and the Centre for International Governance Innovation (CIGI), which took place in Rome. Since 2014, Olive a World of Financial . Engineering: Accounting and the Global Financial Crisis. Shyam. Sunder, Yale University . Journal of Accounting and Public Policy Conference on. Accounting and the World Economic Crisis. a World of Financial Engineering?. Shyam. Sunder, Yale University . Cheng Tsang Man Chair Visiting Professor. School of Accountancy. Singapore Management University. Singapore, January 18, 2013. 1/18/2013.