The fiscal cost of restructuring or bailing out banks has been very high in relation to GDP, and that the cost of a banking crisis affects the level of economic activity and impacts adversely on the ability of financial markets to function efficiently for a long time. This could have been a statement made of the bank bailout package put together in the various countries to arrest the spread of the credit crisis in 2008. The general use of securitization as a tool for market expansion blurs the distinction between it and portfolio investments in terms of their impact on external accounts. This could also be said of the exotic instruments that exacerbated the subprime mortgage runaway. The securitization of credit has produced an expansion both in off-balance sheet activities and in non-banking financial intermediaries. Precisely, the creation and trading of credit default swaps (CDSs), collateralized debt obligations (CDOs) and mortgage-backed securities (MBS) are such examples of securities constituted on underlying debt that created off-balance-sheet movements that affected mortgage firms, insurance companies and securities brokerages (non-bank financial intermediaries). . The Relationship between Financial Deregulation and Financial Crisis and the Origins of the Sub-Prime Crisis in the US.
Barr, R; Seiford, L; & Siems, T (1994) Another Look at the Instrumental-Variable Estimation fo Error-Components. Journal of Econometrics, vol. 68, pp. 29-52.
Brummer, A. (2008) Where the credit crash came from. Management Today. Haymarket Business Publications Ltd, London: May 2008. ps. 34-37
De Young, R; Hasan, I; & Hunter, W C (2000) Determinants of De Novo Bank Survival.
Evans, D (2007) Unsafe Havens. Bloomberg Markets, October 2007. Federal Reserve Bank of Chicago & New York University.
Giron, A & Correa, A (1999) Global financial markets: financial deregulation and crises. International Social Science Journal, June 1999, pp. 183-192.
Gunsel, N (2008) Micro and Macro Determinants of Bank Fragility in North Cyprus Economy. International Research Journal of Finance and Economics, issue 22 pp. 66-82
Jones, D (2000) Emerging problems with the Basel Capital Accord: Regulatory capital arbitrage and related issues. Journal of Banking and Finance, vol. 24, pp. 35-58.
Labaton, S (2008) Agency’s ’04 Rule Let Banks Pile Up New Debt, and Risk.
New York Times, 3 Oct 2008.
Lanine, G & Vennett, R V (2006) Failure Prediction in the Russian Bank Sector with Logit
and Trait Recognition Models. Expert Systems with Applications, vol 30, pp 463–478
McCracken, J & Spector, M 2009 Fed Draws Court’s Eyes in Lehman Bankruptcy. The Wall Street Journal, 5 Oct 2009. Retrieved 5 February 2010 from http://online.wsj.com/article/SB125443891097957691.html
Mian, A R; Sufi, A; & Trebbi, F (2008) The Political Economy of the U.S. Mortgage Default Crisis, University of Chicago Working Paper.
New York Times (2010) Lehman Brothers Holdings, Inc. Business, 2 February. Accessed 2 February 2010 from http://topics.nytimes.com/top/news/business/companies/lehman_
Pezzuto, I 2008 Miraculous Financial Engineering or Toxic Finance? The genesis of the U.S. subprime mortgage loans crisis and its consequences on the global financial markets and real economy. Swiss Management Center Working Paper, Dec 2008
Philips, M (2008) The Monster That Ate Wall Street. Newsweek, 27 Sept. 2008. Retrieved 5 February 2010 from http://www.newsweek.com/id/161199
Podpierra, J & Weill, L (2007) Bad Luck or Bad Management? Emerging Banking Market Experience. Czech National Bank Working Paper Series. May, 2007.
Stark, J (2008) Monetary, fiscal and financial stability in Europe. Speech delivered at the 11th Euro Finance Week in Frankfurt, 18 November 2008. Retrieved 6 February 2010 from http://www.ecb.int/press/key/date/2008/html/sp081118_1.en.html
USA Today (2009) How to deal with banks that are “too big to fail.” News, USA Today, 30 Oct 2009, p. 10a
Wallison, P J (2009) Deregulation and the Financial Crisis: Another Urban Myth. American Enterprise Institute for Public Policy Research. Oct. 2009. N.W., Washington, D.C. Retrieved 6 February 2010 from http:// www.aei.org/outlook/100089
Wheelock, D C & Wilson, P W (2000) Why Do Banks Disappear: The Determinants of U.S. Bank Failures and Acquisitions. The Federal Reserve Bank of St. Louis Working Paper Series.
Zingales, L (2008) Cause and Effects of the Lehman Brothers Bankruptcy. Testimony Before the Committee on Oversight and Government Reform, The United States House of Representatives, 6 Oct 2008.
Please type your essay title, choose your document type, enter your email and we send you essay samples