The 2007 Meltdown in structured securitization: Searching for lessons, not scapegoats

World Bank Research Observer

Volumn 25, Issue 1, 2010, Pages 125-155

  Caprio Jr , Gerard ^a   Demirgü Kunt, Asli ^b   Kane, Edward J ^c  

^a WILLIAMS COLLEGE   (United States)

^b WORLD BANK   (United States)

^c BOSTON COLLEGE   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

CAPITAL MARKET; DEVELOPING WORLD; FINANCIAL CRISIS; FINANCIAL MARKET; GLOBALIZATION; INCENTIVE;

EID: 77954151089     PISSN: 02573032     EISSN: 15646971     Source Type: Journal    
DOI: 10.1093/wbro/lkp029     Document Type: Article

References (38)

1. The word processed describes informally reproduced works that may not be commonly available through libraries
2. Altman, Edward, and Herbert Rijken. 2006. "A Point-in-Time Perspective on Through-the-Cycle Ratings." Financial Analysts Journal 62(1): 54-70.
3. Barth, James R., Gerard Caprio, Jr. and Ross Levine. 2006. Rethinking Bank Regulation: Till Angels Govern. New York: Cambridge University Press.
4. Brunnermeier, Markus K. 2009. "Deciphering the Liquidity and Credit Crunch 2007-2008." Journal of Economic Perspectives 23(1): 77-100.
5. Calomiris, Charles. 1995. "Financial Fragility: Issues and Policy Implications." Journal of Financial Services Research 9:241-57.
6. Calomiris, Charles. 1997. The Postmodern Bank Safety Net. Washington, DC: AEI Press.
7. Calomiris, Charles, and Charles Kahn. 1996. "The Efficiency of a Self-Regulated Payments System: Learning from the Suffolk Banking System. Journal of Money, Credit and Banking 28(4): 766-97.
8. Dell'Ariccia, Giovanni, Deniz Igan, and Luc Laeven. 2008. "Credit Booms and Lending Standards: Evidence from the U.S. Subprime Mortgage Market." IMF Working Paper WP 08/106.
9. Demirgüç-Kunt, Asli{dotless}, and Enrica Detragiache. 1999. "Financial Liberalization and Financial Fragility." In B. Pleskovic, and J. Stiglitz, eds., Proceedings of the World Bank Annual Conference on Development Economics. Washington, DC: World Bank.
10. Demirgüç-Kunt, Asli{dotless}. 2002. "Does Deposit Insurance Increase Banking System Stability? An Empirical Investigation." Journal of Monetary Economics 49(7): 1373-406.
11. Demirgüç-Kunt, Asli{dotless}. 2005. "Cross-Country Empirical Studies of Systemic Bank Distress: A Survey." National Institute Economic Review 192:68-83.
12. Demirgüç-Kunt, Asli{dotless}, and Luis Serven. 2010. "Are All the Sacred Cows Dead? Implications of the Financial Crisis for Macro and Financial Policies." World Bank Research Observer.
13. Evanoff, Douglas, and Larry Wall. 2000. "Subordinated Debt and Bank Capital Reform." Federal Reserve Bank of Atlanta Working Paper 2000-24, November.
14. Federal Reserve Bank of Boston. 2003. "Closing the Gap: A Guide to Equal Opportunity Lending." (http://www.bos.frb.org/commdev/commaff/closingt.pdf).
15. FSI (Financial Stability Institute). 2008. "2008 FSI Survey on the Implementation of the New Capital Adequacy Framework in non-Basel Committee Member Countries: Summary of Responses to the Basel II Implementation Survey." (http://www.bis.org/fsi/fsiop2008.htm).
16. Goodhart, Charles. 2008a. "How, If at All, Should Credit Rating Agencies (CRAs) Be Regulated?" Unpublished manuscript, London School of Economics, July 7.
17. Gorton, Gary, and George Pennachi. 1995. "Banks and Loan Sales: Marketing Non-Marketable Assets." Journal of Monetary Economics 35(3): 389-411.
18. Honohan, Patrick, and Daniela Klingebiel. 2003. "The Fiscal Cost Implications of an Accommodating Approach to Banking Crises." Journal of Banking and Finance 27:1539-60.
19. IMF (International Monetary Fund). 2009. Global Financial Stability Report: Responding to the Financial Crisis and Measuring Systemic Risks. Washington, DC: International Monetary Fund.
20. Jorion, Philippe. 1995. Big Bets Gone Bad: Derivatives and Bankruptcy in Orange County. The Largest Municipal Failure in U.S. History. San Diego: Academic Press.
21. Kane, Edward J. 1977. "Good Intentions and Unintended Evil: The Case Against Selective Credit Allocation." Journal of Money Credit and Banking 9:55-69.
22. Kane, Edward J. 1989. The S&L Insurance Mess: How Did it Happen? Washington, DC: Urban Institute Press.
23. Kane, Edward J. 1999. "How Offshore Financial competition Disciplines Exit Resistance by Incentive-Conflicted Bank Regulators." Journal of Financial Services Research 16(2/3): 265-91.
24. Kane, Edward J.. 2001. "Dynamic Inconsistency of Capital Forbearance: Long-Run vs. Short-Run Effects of Too-Big-to-Fail Policymaking." Pacific-Basin Finance Journal 9:281-99.
25. Kane, Edward J.. 2002. "Using Deferred Compensation to Strengthen the Ethics of Financial Regulation." Journal of Banking and Finance 26:1919-33.
26. Kane, Edward J.. 2008. "Ethical Failures in Regulating and Supervising the Pursuit of Safety-Net Subsidies." Processed. Boston College.
27. Kane, Edward, and Daniela Klingebiel. 2004. "Alternatives to Blanket Guarantees for Containing a Systemic Crisis." Journal of Financial Stability 1:31-63.
28. Keys, Benjamin, Tanmoy Mukherjee, Amit Seru, and Vikrant Vig. 2010. "Did Securitization Lead to Lax Screening? Evidence From Subprime Loans." Quarterly Journal of Economics 125(1).
29. Krugman, Paul. 2008. "Partying Like It's 1929." New York Times, March 21.
30. Mason, Joseph R., and Josh Rosner. 2007. "Where Did the Risk Go? How Misapplied Bond Ratings Cause Mortgage-Backed Securities and Collateralized Debt Obligation Market Disruptions." (http://ssrn.com/abstract=1027475).
31. Partnoy, Frank. 2001. "The Paradox of Credit Ratings." University of San Diego Law and Economics Research Paper 20.
32. Portes, Richard. 2008. "Ratings Agency Reform." Vox Website (http://www.voxeu.org), posted January 22.
33. Posen, Adam S. 2006. "Why Central Banks Should Not Burst Bubbles." International Finance 9(1): 109-24.
34. Roubini, Nouriel. 2005. "Why Central Banks Should Burst Bubbles." Processed. (http://www.cfr.org/publication/10988/international_finance.html).
35. Roubini, Nouriel. 2008. "Super-Senior Tranches of CDOs are Worth Much Less than 22 Cents on the Dollar: Another Ponzi Scheme of 'Selling' Toxic Garbage with More Leverage." Roubini Global Monitor, July 29.
36. Stiglitz, Joseph. 2008. "Unfettered Markets Do Not Lead to Societal Well-Being." (http://economistsview.typepad.com/economistsview/2008/02/joseph-stiglitz.html).
37. Sylla, Richard. 2001. "A Historical Primer on the Business of Credit Ratings." Paper presented at the conference, "The Role of Credit Reporting Systems in the International Economy." Washington, DC: The World Bank.
38. Taylor, John B. 2009. Getting Off Track: How Government Actions and Interventions Caused, Prolonged, and Worsened the Financial Crisis. Stanford: Hoover Institution Press. Caprio, Demirgüç-Kunt, and Kane 155