Resolving the 2008 Financial Crisis in the European Union with the 'Bad Banks'

2017 ◽  
Author(s):  
Elise Lefeuvre
Keyword(s):  
European Union ◽  
Financial Crisis ◽  
The European Union ◽  
2008 Financial Crisis ◽  
The 2008 Financial Crisis

Part III The EU Resolution Regime, 9 Resolution in the European Union

2016 ◽  
Author(s):  
Gleeson Simon ◽  
Guynn Randall
Keyword(s):  
European Union ◽  
Financial Crisis ◽  
Legal Framework ◽  
The European Union ◽  
2008 Financial Crisis ◽  
Member States ◽  
Bank Resolution ◽  
The 2008 Financial Crisis ◽  
Investment Firm ◽  
The Eu

This chapter analyses the Bank Recovery and Resolution Directive and how it is applied to banks and investment firms alike. The BRRD establishes an improved resolution framework to be implemented among the member states of the European Union. The scope of its application is broader than most bank resolution regimes, since in the aftermath of the 2008 financial crisis, it became abundantly clear that the failure of an investment firm could do just as much damage to the financial system as the failure of a deposit taking bank. The chapter considers the legal framework governing the interaction of the EU Resolution Fund, the European Stability Fund, and the contributions of member states in resolving an EU bank.

scholarly journals Have EU derivative policy reforms since the 2008 financial crisis been designed effectively?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Charles Fergus Graham
Keyword(s):  
Financial Crisis ◽  
Heterogeneous Firms ◽  
Public Disclosure ◽  
The European Union ◽  
Policy Reforms ◽  
2008 Financial Crisis ◽  
Content Type ◽  
Reporting Requirements ◽  
Firm Compliance ◽  
The 2008 Financial Crisis

Purpose In response to the 2008 financial crisis, the European Union (EU) comprehensively restructured its derivative regulation. A key component of this new framework is a reporting obligation for every derivative trade. As the reporting requirement does not involve public disclosure of the information, existing academic analysis on reporting regulations to-date, which focusses on public disclosure, is limited in predicting the effectiveness of the reform. This paper aims to assess whether the reform has been designed effectively based on the regulatory setup in the UK. Design/methodology/approach Framing the reporting regulation as a moral hazard problem with asymmetric information, this paper uses a game-theoretical approach to evaluate whether the new derivative reporting obligation effectively induces firm compliance. I also discuss potential extensions of the derivative reporting model, with particular emphasis on how the framework could account for heterogeneous firms and different regulatory tools. Findings Based on the theoretical analysis, this paper finds that while firms are unlikely to comply fully with derivative reporting requirements, it is possible to induce relatively high firm compliance. Although this does not mean we are immune from another financial crisis, the derivative reporting requirements should equip EU regulators to monitor a more transparent and secure derivatives market. Originality/value This paper provides a theoretical foundation for further study of post-crisis derivatives reforms. In particular, the implications of the model point to an empirical strategy to test the accuracy of the model.

scholarly journals It Was Not Meant to Be This Way

2017 ◽  
Vol 26 (1) ◽  
pp. 53-74
Author(s):  
Tom Frost
Keyword(s):  
European Union ◽  
Financial Crisis ◽  
Shared Values ◽  
European Politics ◽  
The European Union ◽  
Important Lesson ◽  
2008 Financial Crisis ◽  
Eu Member States ◽  
Number Of Factors ◽  
The Eu

In June 2016, the United Kingdom’s electorate voted in a referendum to leave the European Union. This article examines ‘Brexit’ from the perspective of British, or English, exceptionalism. It argues that the Leave vote was caused by a number of factors: underlying myths and exceptionalism about the U.K. and its relationship with ‘Europe’; the fallout from the 2007–2008 financial crisis; the austerity policies undertaken in the U.K. since 2010; and the increased migration into the U.K. after the financial crisis, in particular from other EU Member States. The article concludes by arguing that Brexit should serve as an important lesson to listen to all people who feel abandoned by the EU, austerity and globalisation, to hear their stories and perspectives. Only then can we start to think about whether there are shared values and principles which could form the basis for a European politics of the future.

scholarly journals Competitiveness in the European Consolidated Banking Sector After the 2008 Financial Crisis

2020 ◽  
Vol 20 (4) ◽  
pp. 431-444
Author(s):  
Senanu Kwasi Klutse
Keyword(s):  
Financial Crisis ◽  
Market Integration ◽  
Banking Sector ◽  
Level Playing Field ◽  
The European Union ◽  
2008 Financial Crisis ◽  
Playing Field ◽  
Fixed Assets ◽  
The 2008 Financial Crisis ◽  
Capital Expense

AbstractThe constitutional conception of market integration within the European Union entails creating a level playing field for competition in the consolidated banking sector. The financial crisis of 2008 brought with it the need to proceed with care as it rolled back the gains of improving competitive conditions in the financial sector. Even though a lot of studies have investigated competitive conditions prior to the crisis, the same cannot be said of periods after the crisis. Using both structural and non-structural measures of competitive conditions, this study found that the consolidated banking sector in Europe shows signs of a monopolistic competitive market structure based on its revenue and cost measures. As five countries – United Kingdom, France, Germany, Spain, Italy – control about 70 per cent of total assets in the consolidated banking sector. The capital expense to fixed assets and total assets in the Europe area were found to be negatively related to measures of profitability in the sector. They were indicating that the accumulation of assets eats into the incomes of banks in the sub-region, whereas bank exposures may be affecting bank profits.

Ireland

2017 ◽  
Author(s):  
John L. Campbell ◽  
John A. Hall
Keyword(s):  
Financial Crisis ◽  
Multinational Corporations ◽  
European Central Bank ◽  
The European Union ◽  
2008 Financial Crisis ◽  
European Central ◽  
National Question ◽  
The 2008 Financial Crisis ◽  
The Impact ◽  
Capital Injections

This chapter examines how Ireland managed the 2008 financial crisis. It first provides an overview of Ireland's transition from colony to nation-state before discussing its institutions and legacies as well as the national question that it had to deal with. It then considers Ireland's political economy, focusing on the impact of the multinational corporations on the economy, along with the origins of the 2008 financial crisis and a number of issues faced by Ireland, such as the possibility of groupthink and the lack of expertise and regulation in the country. Finally, it analyzes Ireland's response to the crisis in the form of a package of state guarantees, capital injections, efforts to clean up the banks' loan books, and a bailout deal with the Troika of the European Union, European Central Bank, and International Monetary Fund.

Education policy and the European Semester: challenging soft power in hard times

2019 ◽  
pp. 211-224
Author(s):  
Howard Stevenson ◽  
Alison Milner ◽  
Emily Winchip ◽  
Lesley Hagger-Vaughan
Keyword(s):  
European Union ◽  
Public Education ◽  
Financial Crisis ◽  
Education Policy ◽  
Soft Power ◽  
2008 Financial Crisis ◽  
Hard Times ◽  
European Education ◽  
The 2008 Financial Crisis ◽  
National Governments

Education policy is a national competence within European Union rules, and therefore the responsibility of national governments. However, encouraging education policy co-ordination across Member States, and developing a European education ‘policy space’ has always been a feature of EU activity. In this chapter we demonstrate how the EU’s economic governance structures, known as the European Semester, introduced after the 2008 financial crisis have developed to include a significant role for developing European education policy. We identify the need to ‘open up’ the European Semester to more democratic influences and show how education unions across Europe are working to ensure the Semester promotes socially just and democratically accountable public education.

Mathematics without Apologies

2017 ◽  
Author(s):  
Michael Harris
Keyword(s):  
Number Theory ◽  
Financial Crisis ◽  
Pop Culture ◽  
First Century ◽  
2008 Financial Crisis ◽  
Dinner Party ◽  
Mathematical Life ◽  
Personal Experiences ◽  
The 2008 Financial Crisis ◽  
Guided Tour

What do pure mathematicians do, and why do they do it? Looking beyond the conventional answers, this book offers an eclectic panorama of the lives and values and hopes and fears of mathematicians in the twenty-first century, assembling material from a startlingly diverse assortment of scholarly, journalistic, and pop culture sources. Drawing on the author's personal experiences as well as the thoughts and opinions of mathematicians from Archimedes and Omar Khayyám to such contemporary giants as Alexander Grothendieck and Robert Langlands, the book reveals the charisma and romance of mathematics as well as its darker side. In this portrait of mathematics as a community united around a set of common intellectual, ethical, and existential challenges, the book touches on a wide variety of questions, such as: Are mathematicians to blame for the 2008 financial crisis? How can we talk about the ideas we were born too soon to understand? And how should you react if you are asked to explain number theory at a dinner party? The book takes readers on an unapologetic guided tour of the mathematical life, from the philosophy and sociology of mathematics to its reflections in film and popular music, with detours through the mathematical and mystical traditions of Russia, India, medieval Islam, the Bronx, and beyond.

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