Managing Risk in the Financial System

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: The 2010 Banking Law Symposium on Managing Systemic Risk Charles EnochSpecial Address: The Deposit Insurer’s Role in Transitioning from a Government Deposit Guarantee Jean Pierre Sabourin Preface: It Has Been ‘A Hard Day’s Night’John Raymond LaBrosse, Rodrigo Olivares-Caminal and Dalvinder SinghPART I: SYSTEMIC RISK1. Investor Behaviour in the Period Before the 2007–08 Financial CrisisRichard J. Rosen 2. The Nature of Systemic RiskJack Selody3. The Government as Guarantor of Last Resort: Benefits, Costs and the Case for Premium ChargesSebastian Schich4. The Troubled Asset Relief Program: Has Forbearance as Far as the Eye Can See Saved the US Economy?Gillian G.H. Garcia5. Why is the Canadian Banking System so Remarkably Stable? A Comparative Analysis with the USJean Roy, Rima Turk-Ariss and Yenni Redjah6. Systemic Contingent Claim Analysis – A Model Approach to Systemic Risk Dale F. Gray and Andreas A. Jobst7. Tax and the City: The UK’s Proposals for a Bank LevyJohn SnapePART II: SOVEREIGN DEBT8. Iceland’s Financial Disaster and its Fiscal ImpactArnór Sighvatsson and Gunnar Gunnarsson9. The Greek Tragedy: Is There a Deus ex Machina? Ioannis Kokkoris, Rodrigo Olivares-Caminal and Kiriakos Papadakis10. Restructuring a Nation’s DebtLee C. Buchheit and Mitu GulatiPART III: ADDRESSING THE PROBLEM OF ‘TOO-BIG-TO-FAIL’11. Firm Stability and System Stability: The Regulatory DelusionGeoffrey Wood with Ali Kabiri12. ‘Living Wills’: Putting the Caboose Before the Engine and Designing a Better Engine George G. Kaufman13. Finding a Solution to the ‘Too-Big-To-Fail’ ProblemArthur E. Wilmarth, Jr. 14. ‘Too-Big-To-Fail’ – Can Alternative Resolution Regimes Really Remedy Systemic Risk in Large Financial Institutions’ Insolvency?Jens-Hinrich Binder15. To Divest or Not to Divest: That is the Question...Ioannis KokkorisPART IV: CROSS-BORDER ISSUES16. Resolving Large Complex Financial Institutions Within and Across JurisdictionsRobert R. Bliss and George G. Kaufman 17. From Consolidated Supervision to Consolidated ResolutionRosa M. Lastra and Rodrigo Olivares-Caminal18. Creating an EU-Level Supervisor for Cross-border Banking Groups: Issues Raised by the US Experience with Dual Banking Larry D. Wall, María J. Nieto and David G. MayesPART V: PRUDENTIAL REGULATION19. Capital and Liquidity Reform – A New Global Agenda George A. Walker 20. Basel II to Basel III: A Great Leap Forward?Imad MoosaPART VI: COUNTRY CASE STUDIES21. The US Architecture of Bank Regulation and Supervision: Recent Reforms in their Historical ContextDalvinder Singh22. An Evaluation of the Canadian Financial Safety Net During the Global Financial CrisisJohn Raymond LaBrosse and James F. McCollum 23. Financial Safety Net Reform in NigeriaGaniyu Ogunleye 24. Islamic Deposit Insurance System: The Malaysian ModelKhairuddin Hj Arshad25. Managing Financial Risk: The Precautionary Principle and Protecting the Public Interest in the UKJohn F. McEldowney Index

’This book contains a large number of chapters, nearly 30 in all, by acknowledged experts on various aspects of the recent financial crisis. Whichever aspect of this crisis that may interest you, such as bank taxes, deposit insurance, TBTF and how to respond, cross-border issues, and many, many others, you will find chapters that are both authoritative and stimulating in this collection. The editors are to be congratulated not only in their selection of authors but also in the speed with which they have taken them from conference presentation to book chapter.’