Who could have thought that banks would become nationalised, that state debts would reach historical levels, that bulge bracket investment banks would go bankrupt and that the masters of the universe would be so widely vilified? Each in their own way, the four reflections collected in this...

Purpose – This chapter examines the roles and challenges for the Irish economy in the aftermath of the collapse of the Celtic Tiger and the onset of the 2008 economic crisis. Specifically it does review the role that Government, the Central Bank of Ireland, and the Financial Regulator had...

We study key vulnerabilities of the US Primary Dealers during the 2007-08 financial crisis. Dealers' exposure to risky assets drives the repo run; importantly, repos become sensitive to counterparty risk only at the height of the crisis. Further, the way in which dealers use repo funding exposes...

The current financial crisis had its origins in the US subprime mortgage market and led to downturns in global equity, credit and commodity markets. This paper identifies the lack of economic information in risk valuation models as one reason why the financial industry was unable to predict,...

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...

This relatively simple model attempts to capture and integrate four widely held views about financial crises. [1] Interconnectedness among financial institutions (banks) can play a major role in precipitating systemic financial crises. [2] Lack of information about the quality of bank portfolios...