How Big Banks Fail and What to Do About It (ebook)

Argumento de How Big Banks Fail and What to Do About It (ebook)

"In How Big Banks Fail and What to Do about It, Darrell Duffie tackles one of the central but often neglected issues in building a more resilient financial system. Duffie has that rare combination--the rigor of the academy and knowledge of how the plumbing of the financial system works. Anyone interested in regulatory reform will need to engage with his thinking."--Paul Tucker, deputy governor, financial stability, Bank of England

"The book does an excellent job of explaining the institutional setting of big dealer banks and how things went wrong in the financial crisis. The issues are important and the policy suggestions sound. There is nothing quite like this out there."--Franklin Allen, University of Pennsylvania

"Darrell Duffie is one of the leading experts on the problem of large-bank failures. He focuses on issues not addressed elsewhere, but which are being talked about everywhere. This book scores in a big way."--Viral V. Acharya, New York University

"There are precious few manuals on global finance. To be sure, there are enough leaden textbooks and scholarly tomes to crush many a library, but there are few nuts-and-bolts guides. Darrell Duffie has performed a great service by attempting to explain in simple terms why and how major investment banks (what he calls 'dealer banks') collapse. . . . How Big Banks Fail is . . . a valuable addition to public literature on the global financial crisis."--Joel Campbell, International Affairs

"This is a clear and readable account of the mechanisms and incentives at play."--Saxon Brettell, Business Economist

"I highly recommend the book. I believe the text should be standard reading for anybody involved with regulating and supervising financial institutions as it offers valuable insights into the plumbing of financial markets and the mechanisms that can cause bank failures. The discussed mechanisms are thought provoking and can provide researchers and regulators with valuable ideas for future research on the financial system as well as banking regulation."--Jan Wrampelmeyer, Financial Markets and Portfolio Management

"[T]his volume will give readers a deeper understanding of how modern banking works."--Choice0List of Figures and Tables ix
Preface xi
Chapter One: Introduction 1
Chapter Two: What Is a Dealer Bank? 9
Chapter Three: Failure Mechanisms 23
Chapter Four: Recapitalizing a Weak Bank 43
Chapter Five: Improving Regulations and Market Infrastructure 53
Appendix: Central Clearing of Derivatives 63
Notes 71
Bibliography 79
Index 87