We continue to struggle with the legacy of the 2008 financial crisis, which was fundamentally caused by the incurrence of too much leverage on the part of all economic participants, including individuals, private firms and financial institutions, and governments. Despite continued high...

This is a Powerpoint presentation. The full article is also available on ssrn at http://ssrn.com/abstract=1924831U.S. policymakers often treat market competition as a panacea. However, in the case of mortgage securitization, policymakers' faith in competition is misplaced. Competitive mortgage...

U.S. policymakers often treat market competition as a panacea. However, in the case of mortgage securitization, policymakers' faith in competition is misplaced. Competitive mortgage securitization has been tried three times in U.S. history - during the 1880s, the 1920s, and the 2000s - and every...

The current financial and economic crisis, the worst since the Great Depression, is a cycle of banking and real economy crisis that can only be stopped by appropriate structural policies to shore-up and deleverage the financial system, supply liquidity through the monetary policy and stimulate...

It was everyone's worst nightmare; the spectre of systemic collapse. And this time, everyone was in it together. The complexity of modern financial instruments was one obvious culprit. Centuries old legal principles, such as the notion of "insurable interest", were also cast aside; old fashioned...

This article argues that there is a fundamental mismatch between the nature of finance and current approaches to financial regulation. Today's financial system is a dynamic and complex ecosystem. For these and other reasons, policy makers and market actors regularly have only a fraction of the...

In August 2007 the United Kingdom experienced its first bank run in over 140 years. Although Northern Rock was not a particularly large bank (it was at the time ranked 7th in terms of assets) it was nevertheless a significant retail bank and a substantial mortgage lender. In fact, ten years...

After the 2008 financial crisis, policymakers focused on enacting improvements in two areas of financial regulation: capital and liquidity, affecting the composition of bank assets and the sources of bank funding. These improvements made both the emergence of a crisis less likely and the...

This paper presents a novel approach to investigate and model the network of euro area banks' large exposures within the global banking system. Drawing on a unique dataset, the paper documents the degree of interconnectedness and systemic risk of the euro area banking system based on bilateral...