Connectedness and contagion : protecting the financial system from panics / Hal S. Scott.
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| Language: | English |
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Cambridge, Massachusetts :
The MIT Press,
[2016]
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| Physical Description: | xxi, 416 pages ; 23 cm |
| Format: | Book |
Contents:
- Acknowledgments
- Introduction
- Connectedness, contagion, and correlation : definitions and a review of the economic literature
- The concept of connectedness
- The concept and history of contagion
- The concept of correlation
- Connectedness in the crisis
- Asset connectedness : Lehman and AIG
- Liability connectedness : money market funds and tri-party repo market
- The Dodd-Frank Act policies to address connectedness
- Contagion
- Contagion in the 2008 crisis : the run on the non-bank sector, "shadow banks"
- The history of lender of last resort in the United States
- Dodd-Frank restrictions on the lender of last resort power
- Comparison of LLR powers of fed with Bank of England, European Central Bank, and Bank of Japan
- Strengthening the LLR powers of the fed
- Liability insurance and guarantees
- Insuring money market funds
- Ex-ante policies to avoid contagion : capital, liquidity, resolution, money market mutual fund reform, and limits on short-term funding
- Capital requirements : Basel III framework
- Liquidity requirements
- Bank resolution procedures, contingent capital (CoCos), and bail-ins
- Dodd-Frank orderly liquidation for non-bank SIFIs (including bank holding companies)
- Living wills
- Money market mutual fund reform
- The dependence of the financial system on short-term funding
- Government crowding out of private issuance of short-term debt
- Public capital injections into insolvent financial institutions, i.e "bailouts"
- Capital purchase program and other TARP support programs
- Criticisms of bailouts generally
- Specific criticism of tarp
- Standing bailout programs
- Conclusion
- Notes
- Index.