Restoring Financial Stability: How to Repair a Failed System

Restoring Financial Stability: How to Repair a Failed System

Author(s): Viral V. Acharya, Matthew Richardson

Published Online: 9 JAN 2012 09:19AM EST

Print ISBN: 9780470499344

Online ISBN: 9781118258163

DOI: 10.1002/9781118258163

About this Book

An insightful look at how to reform our broken financial system

The financial crisis that unfolded in September 2008 transformed the United States and world economies. As each day's headlines brought stories of bank failures and rescues, government policies drawn and redrawn against the backdrop of an historic Presidential election, and solutions that seemed to be discarded almost as soon as they were proposed, a group of thirty-three academics at New York University Stern School of Business began tackling the hard questions behind the headlines. Representing fields of finance, economics, and accounting, these professors-led by Dean Thomas Cooley and Vice Dean Ingo Walter-shaped eighteen independent policy papers that proposed market-focused solutions to the problems within a common framework. In December, with great urgency, they sent hand-bound copies to Washington. Restoring Financial Stability is the culmination of their work.

  • Proposes bold, yet principled approaches-including financial policy alternatives and specific courses of action-to deal with this unprecedented, systemic financial crisis
  • Created by the contributions of various academics from New York University's Stern School of Business
  • Provides important perspectives on both the causes of the global financial crisis as well as proposed solutions to ensure it doesn't happen again
  • Contains detailed evaluations and analyses covering many spectrums of the marketplace

Edited by Matthew Richardson and Viral Acharya, this reliable resource brings together the best thinking of finance and economics from the faculty of one of the top universities in world.

Table of contents

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  1. Part I: Causes of the Financial Crisis of 2007–2009

    1. Chapter 1

      Mortgage Origination and Securitization in the Financial Crisis (pages 57–82)

      Matthew Richardson, Dwight Jaffee, Anthony W. Lynch, Matthew Richardson and Stijn Van Nieuwerburgh

  2. Part II: Financial Institutions

    1. Chapter 4

      What to Do about the Government-Sponsored Enterprises? (pages 117–137)

      Matthew Richardson, Dwight Jaffee, Matthew Richardson, Stijn Van Nieuwerburgh, Lawrence J. White and Robert E. Wright

    2. Chapter 6

      Hedge Funds in the Aftermath of the Financial Crisis (pages 157–177)

      Stephen J. Brown, Marcin Kacperczyk, Alexander Ljungqvist, Anthony W. Lynch, Lasse H. Pedersen and Matthew Richardson

  3. Part III: Governance, Incentives, and Fair Value Accounting Overview

    1. Chapter 7

      Corporate Governance in the Modern Financial Sector (pages 179–196)

      Viral V. Acharya, Rangarajan K. Sundaram, Viral V. Acharya, Jennifer N. Carpenter, Xavier Gabaix, Kose John, Matthew Richardson, Marti G. Subrahmanyam, Rangarajan K. Sundaram and Eitan Zemel

    2. Chapter 8

      Rethinking Compensation in Financial Firms (pages 197–214)

      Gian Luca Clementi, Thomas F. Cooley, Matthew Richardson and Ingo Walter

  4. Part IV: Derivatives, Short Selling, and Transparency

    1. Chapter 10

      Derivatives: The Ultimate Financial Innovation (pages 229–249)

      Viral V. Acharya, Viral V. Acharya, Menachem Brenner, Robert F. Engle, Anthony W. Lynch and Matthew Richardson

    2. Chapter 11

      Centralized Clearing for Credit Derivatives (pages 251–268)

      Viral V. Acharya, Robert F. Engle, Stephen Figlewski, Anthony W. Lynch and Marti G. Subrahmanyam

    3. Chapter 12

      Short Selling (pages 269–275)

      Menachem Brenner and Marti G. Subrahmanyam

  5. Part V: The Role of the Federal Reserve

    1. Chapter 13

      Regulating Systemic Risk (pages 277–303)

      Thomas F. Cooley, Thomas Philippon, Viral V. Acharya, Lasse H. Pedersen, Thomas Philippon and Matthew Richardson

  6. Part VI: The Bailout

    1. Chapter 15

      The Financial Sector Bailout: Sowing the Seeds of the Next Crisis? (pages 323–339)

      Thomas F. Cooley, Thomas Philippon, Viral V. Acharya and Rangarajan K. Sundaram

  7. Part VII: International Coordination

    1. You have free access to this content
    1. You have free access to this content