LEADER 04818nam 2200781 a 450 001 9910788583803321 005 20200520144314.0 010 $a1-283-89799-7 010 $a0-8122-0507-3 024 7 $a10.9783/9780812205077 035 $a(CKB)3240000000064730 035 $a(OCoLC)824522207 035 $a(CaPaEBR)ebrary10642745 035 $a(SSID)ssj0000606337 035 $a(PQKBManifestationID)11413800 035 $a(PQKBTitleCode)TC0000606337 035 $a(PQKBWorkID)10581334 035 $a(PQKB)11396043 035 $a(OCoLC)793012545 035 $a(MdBmJHUP)muse14343 035 $a(DE-B1597)449449 035 $a(OCoLC)979578140 035 $a(DE-B1597)9780812205077 035 $a(Au-PeEL)EBL3441993 035 $a(CaPaEBR)ebr10642745 035 $a(CaONFJC)MIL421049 035 $a(MiAaPQ)EBC3441993 035 $a(EXLCZ)993240000000064730 100 $a20110615d2011 uy 0 101 0 $aeng 135 $aurcn||||||||| 181 $ctxt$2rdacontent 182 $cc$2rdamedia 183 $acr$2rdacarrier 200 10$aEngineering the financial crisis$b[electronic resource] $esystemic risk and the failure of regulation /$fJeffrey Friedman and Wladimir Kraus 205 $a1st ed. 210 $aPhiladelphia $cUniversity of Pennsylvania Press$dc2011 215 $a1 online resource (x, 212 pages) $cillustrations 300 $aBibliographic Level Mode of Issuance: Monograph 311 $a0-8122-4357-9 320 $aIncludes bibliographical references (p. [175]-200) and index. 327 $tBonuses, Irrationality, and Too-Bigness: The Conventional Wisdom About the Financial Crisis and Its Theoretical Implications --$tCapital Adequacy Regulations and the Financial Crisis: Bankers' and Regulators' Errors --$tThe Interaction of Regulations and the Great Recession: Fetishizing Market Prices --$tCapitalism and Regulation: Ignorance, Heterogeneity, and Systemic Risk --$tAppendix I. Scholarship About the Corporate-Compensation Hypothesis --$tAppendix II. The Basel Rules off the Balance Sheet. 330 $aThe financial crisis has been blamed on reckless bankers, irrational exuberance, government support of mortgages for the poor, financial deregulation, and expansionary monetary policy. Specialists in banking, however, tell a story with less emotional resonance but a better correspondence to the evidence: the crisis was sparked by the international regulatory accords on bank capital levels, the Basel Accords.In one of the first studies critically to examine the Basel Accords, Engineering the Financial Crisis reveals the crucial role that bank capital requirements and other government regulations played in the recent financial crisis. Jeffrey Friedman and Wladimir Kraus argue that by encouraging banks to invest in highly rated mortgage-backed bonds, the Basel Accords created an overconcentration of risk in the banking industry. In addition, accounting regulations required banks to reduce lending if the temporary market value of these bonds declined, as they did in 2007 and 2008 during the panic over subprime mortgage defaults.The book begins by assessing leading theories about the crisis-deregulation, bank compensation practices, excessive leverage, "too big to fail," and Fannie Mae and Freddie Mac-and, through careful evidentiary scrutiny, debunks much of the conventional wisdom about what went wrong. It then discusses the Basel Accords and how they contributed to systemic risk. Finally, it presents an analysis of social-science expertise and the fallibility of economists and regulators. Engagingly written, theoretically inventive, yet empirically grounded, Engineering the Financial Crisis is a timely examination of the unintended-and sometimes disastrous-effects of regulation on complex economies. 606 $aGlobal Financial Crisis, 2008-2009 606 $aFinancial crises$zUnited States$xHistory$y21st century 606 $aBank capital$xLaw and legislation 606 $aBanks and banking$xRisk management 606 $aEconomics$xPolitical aspects 607 $aFinancial crises$zUnited States$xHistory$y21st century 610 $aBusiness. 610 $aEconomics. 610 $aPolitical Science. 610 $aPublic Policy. 615 0$aGlobal Financial Crisis, 2008-2009. 615 0$aFinancial crises$xHistory 615 0$aBank capital$xLaw and legislation. 615 0$aBanks and banking$xRisk management. 615 0$aEconomics$xPolitical aspects. 676 $a330.9/0511 700 $aFriedman$b Jeffrey$f1959-$01467618 701 $aKraus$b Wladimir$01467636 801 0$bMiAaPQ 801 1$bMiAaPQ 801 2$bMiAaPQ 906 $aBOOK 912 $a9910788583803321 996 $aEngineering the financial crisis$93678369 997 $aUNINA