International Finance Regulation - The Quest for Financial Stability

"As the global market expands, the need for international regulation becomes urgentEffective financial regulation inspires market confidence, stability, consumer protection, and a reduction in financial crime. But over the past fifty years, a number of crises have arisen and spread around the world, making global regulation essentially impossible. The last crisis was endogenous due to internal flaws in the management and the structure of the financial system. While individual nations have reformed domestic regulation, these combined measures are still insufficient to prevent financial crisis. Comprehensive crisis prevention can only be initiated by strategic international regulation.International Finance Regulation: The Quest for Financial Stability focuses on the inspirations behind regulation, and examines the risks and consequences of fragmentation on a global scale. Author Georges Ugeux has four decades of experience in the legal and economic aspects of international finance. Formerly in charge of the NYSE and foreign stock exchanges, regulators, and governments, Ugeux is uniquely positioned to provide recommendations and suggestions from the perspective of a top global authority. In the book, he explores international regulation with topics such as: Laws, regulations, and the risks stemming from overregulation The transformation of the U.S. market and the creation of the Eurozone Development of a global framework and the inadequacy of the banking system In-depth examination of Basel III, the Dodd-Frank Act, Glass-Steagall Act, and the Volcker Rule The book also contains case studies from real-world scenarios like Lehman, CDS, Greece, the London Whale, and Libor to illustrate the concepts presented. Finance consistently operates within an increasingly global paradigm, and an overarching regulation scheme is becoming more and more necessary for sustainable growth. International Finance Regulation: The Quest for Financial Stability presents an argument for collaboration toward a comprehensive global regulation strategy to reach financial stability"--...

Table des matières

Preface xiii
 
Is Finance in a Stage of Permanent Crisis? xiv
 
Global Markets Are Interconnected xvi
 
Regulating Finance in a World in Crisis xviii
 
A Web of Institutional Complexity xix
 
Will Global Financial Regulation Become Lex America? xx
 
Applying Global Regulatory Convergence xxii
 
Regulator and Regulated: The Infernal Couple xxiii
 
Finance Cannot Be Left Unregulated xxiii
 
Five Years after Lehman, Regulation
 
Could Not Change the Culture xxiv
 
A Culture of Outlaws xxv
 
I Will Never Give Up xxvi
 
Notes xxvii
 
CHAPTER 1 The Multiple Objectives of Financial Regulation 1
 
Stop (Ab)using Taxpayer Money 2
 
Protect Retail and Small Investors and Depositors 3
 
Ensure Transparency of Markets and Institutions 5
 
Implement a Truly Risk-Adjusted Remuneration System 6
 
Protect Deposits from Trading 7
 
Notes 8
 
CHAPTER 2 A Quarter Century of Banking Crises and the Evolution of Financial Institutions 11
 
Banking Crises Are Not Exactly a Recent Phenomenon 12
 
The Two Main Emerging-Market Crises 13
 
Subprime Crisis 14
 
Lehman Crisis 16
 
European Sovereign Debt Crisis 17
 
European Banking Crisis 17
 
LIBOR Manipulation 19
 
Will the Foreign Exchange Market Be Next? 21
 
Notes 23
 
CHAPTER 3 The Lessons of the Recent Financial Crises: The Explosion of Balance Sheets 27
 
Structural Overbanking of Europe 28
 
Lack of Transparency of the Derivative Markets 33
 
Emergence of the Credit Default Swap (CDS) Market 34
 
The Regulatory Landscape Is Not Global but Largely National 35
 
Notes 35
 
CHAPTER 4 Global Financial Regulation: The Institutional Complexities 37
 
Group of 20 (G20) 39
 
Financial Stability Board (FSB) 41
 
Bank for International Settlements (BIS) and the Basel Committee (BCBS) 42
 
International Monetary Fund (IMF) 43
 
International Organization of Securities Commissions (IOSCO) 45
 
International Accounting Standard Board (IASB) 46
 
International Association of Insurance Supervisors (IAIS) 47
 
Notes 50
 
CHAPTER 5 Capital Adequacy, Liquidity, and Leverage Ratios: Sailing toward the Basel III Rules 53
 
Part I: Capital Adequacy 55
 
Part II: Liquidity 59
 
Part III: Leverage 62
 
Notes 66
 
CHAPTER 6 Assessing Likely Impacts of Regulation on the Real Economy 69
 
Notes 73
 
CHAPTER 7 Regulating the Derivatives Market 75
 
Origin of the Derivatives Market 77
 
Size of the Derivatives Markets 78
 
U.S. Regulation: Dodd-Frank Act 78
 
European Market Infrastructure
 
Regulation (EMIR) 79
 
Transatlantic Divergences 80
 
Short Selling Is a Form of Derivative 81
 
JPMorgan Chase London Trading Losses 82
 
Notes 83
 
CHAPTER 8 The Structure of Banking: How Many Degrees of Separation? 87
 
Systemically Important Financial Institutions (SIFIs) 87
 
Universal Banking Model 89
 
Separation Models 90
 
United Kingdom 90
 
United States 90
 
European Union 91
 
Sw+itzerland 92
 
Volcker Rule and Proprietary Trading 92
 
Too Big to Fail (TBTF): Is Size the Problem? 95
 
Prohibit the Trading of Commodities by Banks 97
 
Notes 98
 
CHAPTER 9 Banking Resolution and Recovery 101
 
Moral Hazard 102
 
Can the Bail-In Concept Avoid Taxpayers' Bailout? 103
 
Lessons from the

A propos de l'auteur

GEORGES UGEUX, a lawyer and economist by training, is the Chairman and CEO of Galileo Global Advisors. Prior to founding Galileo, Ugeux joined the New York Stock Exchange as Group Executive Vice President, International and Research. He created and ran the New York Stock Exchange's international group in charge of developing the NYSE's reach to non-US companies, including relationships with regulators and governments. Ugeux teaches European Banking and Finance at the Columbia University School of Law and has been publishing, speaking, and blogging on these issues, namely for Le Monde (France) and the Huffington Post.

Résumé

As the global market expands, the need for international regulation becomes urgent

Since World War II, financial crises have been the result of macroeconomic instability until the fatidic week end of September 15 2008, when Lehman Brothers filed for bankruptcy. The financial system had become the source of its own instability through a combination of greed, lousy underwriting, fake ratings and regulatory negligence. From that date, governments tried to put together a new regulatory framework that would avoid using taxpayer money for bailout of banks. In an uncoordinated effort, they produced a series of vertical regulations that are disconnected from one another. That will not be sufficient to stop finance from being instable and the need for international and horizontal regulation is urgent. This challenge is the focus of Georges Ugeux's book.

International Finance Regulation: The Quest for Financial Stability focuses on the inspirations behind regulation, and examines the risks and consequences of fragmentation on a global scale. Author Georges Ugeux has four decades of experience in the legal and economic aspects of international business operations. He created and run the New York Stock Exchange'sinternational group in charge of developing the NYSE's reach to non-US companies, including relationships with regulators and governments. Ugeux teaches European Banking and Finance of the Columbia University School of Law. Ugeux is uniquely positioned to provide recommendations and suggestions from the perspective of a top global authority. In the book, he explores international regulation with topics such as:

* Laws, regulations, and risks of overregulation
* Transformation of the U.S. market and creation of the Eurozone
* Development of a global framework and stability of the banking system
* In-depth examination of Basel III, the Dodd-Frank Act, the European Banking Union, and the Volcker Rule

The book also contains case studies from real-world scenarios like Lehman, CDS, Greece, the London Whale, and Libor to illustrate the concepts presented. Finance consistently operates within an increasingly global paradigm, and an overarching regulation scheme is becoming more and more necessary for sustainable growth. International Finance Regulation: The Quest for Financial Stability presents an argument for collaboration toward a comprehensive global regulation strategy.

Commentaire

"Georges Ugeux draws on his experience as well as his training as an economist and lawyer to tackle a daunting topic: International Finance regulation: The Quest for Financial Stability (Wiley, 2014). (...) Backward-looking rules are only one problem with current financial regulation. Another is its fragmentation, especially across national borders. (...) Ugeux is not especially hopeful that we can resolve the problems that stand in the way of global financial stability. In fact, if the volcano model is apt, stability itself is a chimera."-Brenda Jubin, Reading the markets, Investing.com

Détails du produit

• Auteurs: Ugeux, G Ugeux, Georges Ugeux, Ugeux Georges
• Edition: Wiley, John and Sons Ltd
• Langues: Anglais
• Format d'édition: Livre Relié
• Sortie: 08.08.2014
• EAN: 9781118829592
• ISBN: 978-1-118-82959-2
• Pages: 240
• Thèmes: Wiley Finance; Wiley Finance Editions; The Wiley Finance Series; Wiley Finance; Wiley Finance Editions; The Wiley Finance Series
• Catégories: Sciences naturelles, médecine, informatique, technique > Technique > Général, dictionnaires; Sciences sociales, droit, économie > Economie > Economie privée; Finanzwesen, International Finance, Financial law: general, Finance & Investments, Finanz- u. Anlagewesen, Internationales Finanzwesen