Financial Crisis Containment and Government Guarantees

Edited by John Raymond LaBrosse, Patterson & LaBrosse Financial Consultants Ltd, Canada and Honorary Visiting Fellow, School of Law, University of Warwick, Rodrigo Olivares-Caminal, Chair in Banking and Finance Law, Centre for Commercial Law Studies, Queen Mary University of London and Dalvinder Singh, School of Law, University of Warwick, UK

• Contents:Foreword Joseph J. NortonForewordArthur E. Wilmarth, Jr.PrefaceJohn Raymond LaBrosse, James F. McCollum, Rodrigo Olivares-Caminal and Dalvinder SinghPART I: MANAGING THE FINANCIAL CRISIS1. Managing Crises Without Government Guarantees: How Do We Get There?Christine M. Cumming 2. Improving the Decision-making Framework for Financial Crisis ManagementJohn Raymond LaBrosse and Dalvinder Singh3. Powers and Scope of the Macro-prudential AuthorityCharles A.E. Goodhart4. Resolving Systemically Important Financial Institutions (SIFIs): The Financial Stability Board Key Attributes of Effective Resolution RegimesEva HüpkesPART II: THE SPECIAL PROBLEMS OF EUROPE5. Crisis Management and Guarantees in EuropeCharles Enoch6. Regulatory Responses to the Financial CrisisRosa M. Lastra7. The Federal Agency for Financial Market Stabilisation: From Rescuing to RestructuringChristopher Pleister8. Extraordinary Measures for Extraordinary Times and the Need for Effective Bank Resolution Laws in EuropeGillian G. Garcia and Maria J. NietoPART III: USING GOVERNMENT GUARANTEES9. The Fault Lines in Cross-border Banking: Lessons from the Icelandic CaseMár Guðmundsson10. Government Guarantees and Contingent Capital: Choosing Good Shock AbsorbersDavid G. Mayes11. Public Guarantees on Bank Bonds: Effectiveness and DistortionsGiusèppe Grande, Aviram Levy, Fabio Panetta and Andrea Zaghini12. The Impact of Sovereign Guarantees on the Quality of Bank Debt: Theory and Evidence from EuropeArturo Estrella and Sebastian Schich13. An Insurance Approach for Preventing Financial CrisesMichael Faure and Klaus Heine14. Transforming Bailouts into Investments: A Proposal for the Creation of the Federal Government Investment CorporationJeffrey MannsPART IV: SOVEREIGN DEBT ISSUES15. The Treatment of Contingent Liabilities in a Sovereign Debt RestructuringLee C. Buchheit and Mitu Gulati16. The European Stability Mechanism: Some Notes on a New EU Institution Designed to Avert Financial CrisesRodrigo Olivares-Caminal17. Liquidity Spillovers in Credit Markets During the Eurozone CrisisGiovanni Calice, Jing Chen and Julian WilliamsIndex

‘This enlightening volume provides an invaluable guide for those perplexed by the seemingly intractable problems of financial crises, sovereign distress, and government guarantees. Contributors include an all-star cast of leading figures in the field. Highly recommended.’