This article seeks to contribute to the discussion concerning the adequacy of the legal responses to conflicts of interest in institutional asset management. After defining the legal concept of a conflict of interest in general, the insights of economic theory, especially agency theory, are...

Treasury trade organizations report a sharp increase in demand of corporations wanting to manage their credit bank relationships. In doing so, these companies seek to understand the risk adjusted capital that credit banks must reserve against their fee based and credit based business, and the...

Fannie Mae and Freddie Mac are huge, fast-growing, highly leveraged, lightly regulated, and susceptible to failure. Prudence calls for having a legal mechanism adequate for handling their failure. Yet no adequate insolvency mechanism currently exists for them. Unlike ordinary business firms,...

The authors analyze changes resulting from impacts of the globalization process and the crisis on the financial markets, particularly on the conservative insurance sector, which is forced to accelerate the dynamics of structural changes. The adequacy of the current regulatory measures for the...

The authors of the article point out that economic theory has failed to yield a solid theoretical background in critical situations such as the current financial and economic crisis and the transformation of post-communist economies. Mainly the present crisis opens the question of the...

From an analysis of the uncertainties, deficiencies and negative effects of the present monetary system the necessity and the requirements for a new monetary order are derived. These requirements are fulfilled by the presented regulations of a monetary order, which is based on the proposals of...

The most recent literature on crises points out that financial fragility in the banking and/or corporate sector are at the root of financial crises. In this paper we explore how Turkish shareholders reacted to changes in their banks' measures of financial fragility during the years prior to the...

In this paper, we test the hypothesis that granting employee stock options motivates CEOs of banking firms to undertake riskier projects. We also investigate whether granting employee stock options reduces the bank's incentive to borrow while inducing a buildup of regulatory capital. Using a...

This paper analyses the impact of the transition from price-cap regulation (deposit/loan rate control) to rate-of-return regulation (ROA, NPLs and/or BIS ratio) on banking industry structure. A simple theoretical model of banking competition suggests that the relative dominance of the two...

We assess the extent to which stock market information can be used to estimate leading indicators of bank financial distress. We specify a logit early warning model, designed for European banks, which tests if market based indicators add predictive value to models relying on accounting data. We...