Post-Crisis Reform: A lost opportunity? C.P. Chandrasekhar and Jayati Ghosh

In its recently released annual report, the Federal Reserve Bank of Dallas makes a case for breaking up banks considered too big to fail. But the failure to do that is only one possible way in which the opportunity provided by the crisis to reform and regulate finance has been lost. Post_Crisis_Reform (Download the full text in PDF format) (This article was originally published in the Business Line on April 2, 2012)

Debtors’ Crisis or Creditors’ Crisis? Who Pays for the European Sovereign and Subprime Mortgage Losses? Jan Kregel

In the context of the eurozone’s sovereign debt crisis and the US subprime mortgage crisis, this article looks at the question of how the losses ought to be distributed between borrowers and lenders in cases of debt resolution. The author points out that it is unlikely that debtors can fully bear the losses in a debt resolution. It is argued that the behavior and policy of creditors is just as important a factor to consider in assessing the situation. debtors_crisis (Download the full text in PDF format)

Structural Reform Of Systemically Important Financial Institutions: The FSB’s Response To Too Big To Fail Andrew Conford

Earlier this year, the focus was mainly on the Dodd-Frank Wall Street Reform and Consumer Protection Act of the USA. The question of how to address risks posed by Systematically Important Financial Institutions (SIFI) was one of the most contentious issues in this context. During the same period the Financial Stability Board (FSB) issued a less widely noticed document also addressing policy towards SIFIs. The author here reviews the FSB proposals in detail. structural_reform (Download the full text in PDF format)