LEADER 03878nam 22006974a 450 001 9910785237303321 005 20200520144314.0 010 $a1-282-86480-7 010 $a9786612864803 010 $a1-4008-3699-9 024 7 $a10.1515/9781400836994 035 $a(CKB)2670000000055011 035 $a(EBL)597863 035 $a(OCoLC)681913249 035 $a(SSID)ssj0000419916 035 $a(PQKBManifestationID)11286363 035 $a(PQKBTitleCode)TC0000419916 035 $a(PQKBWorkID)10391370 035 $a(PQKB)10249656 035 $a(MdBmJHUP)muse36859 035 $a(DE-B1597)446866 035 $a(OCoLC)979742022 035 $a(DE-B1597)9781400836994 035 $a(Au-PeEL)EBL597863 035 $a(CaPaEBR)ebr10424714 035 $a(CaONFJC)MIL286480 035 $a(PPN)170253597 035 $a(MiAaPQ)EBC597863 035 $a(EXLCZ)992670000000055011 100 $a20100812d2011 uy 0 101 0 $aeng 135 $aur|n|---||||| 181 $ctxt 182 $cc 183 $acr 200 10$aHow big banks fail and what to do about it$b[electronic resource] /$fDarrell Duffie 205 $aCourse Book 210 $aPrinceton, N.J. $cPrinceton University Press$dc2011 215 $a1 online resource (108 p.) 300 $aDescription based upon print version of record. 311 $a0-691-14885-6 320 $aIncludes bibliographical references (p. [79]-86) and index. 327 $aIntroduction -- What is a dealer bank? -- Failure mechanisms -- Recapitalizing a weak bank -- Improving regulations and market infrastructure -- Appendix: Central clearing of derivatives. 330 $aDealer banks--that is, large banks that deal in securities and derivatives, such as J. P. Morgan and Goldman Sachs--are of a size and complexity that sharply distinguish them from typical commercial banks. When they fail, as we saw in the global financial crisis, they pose significant risks to our financial system and the world economy. How Big Banks Fail and What to Do about It examines how these banks collapse and how we can prevent the need to bail them out. In sharp, clinical detail, Darrell Duffie walks readers step-by-step through the mechanics of large-bank failures. He identifies where the cracks first appear when a dealer bank is weakened by severe trading losses, and demonstrates how the bank's relationships with its customers and business partners abruptly change when its solvency is threatened. As others seek to reduce their exposure to the dealer bank, the bank is forced to signal its strength by using up its slim stock of remaining liquid capital. Duffie shows how the key mechanisms in a dealer bank's collapse--such as Lehman Brothers' failure in 2008--derive from special institutional frameworks and regulations that influence the flight of short-term secured creditors, hedge-fund clients, derivatives counterparties, and most devastatingly, the loss of clearing and settlement services. How Big Banks Fail and What to Do about It reveals why today's regulatory and institutional frameworks for mitigating large-bank failures don't address the special risks to our financial system that are posed by dealer banks, and outlines the improvements in regulations and market institutions that are needed to address these systemic risks. 606 $aBank failures 606 $aBank failures$xPrevention 606 $aBank failures$zUnited States 606 $aFinancial crises 615 0$aBank failures. 615 0$aBank failures$xPrevention. 615 0$aBank failures 615 0$aFinancial crises. 676 $a332.1 700 $aDuffie$b Darrell$055005 801 0$bMiAaPQ 801 1$bMiAaPQ 801 2$bMiAaPQ 906 $aBOOK 912 $a9910785237303321 996 $aHow big banks fail and what to do about it$93698201 997 $aUNINA