The 2007 Meltdown in Structured Securitization
The intensity of the crisis in financial markets has surprised nearly everyone. The authors search out the root causes of the crisis, distinguishing them from scapegoating explanations that have been used in policy circles to divert attention from the underlying breakdown of incentives. Incentive co...
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World Bank
2012
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| Online Access: | http://hdl.handle.net/10986/4436 |
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okr-10986-44362021-04-23T14:02:17Z The 2007 Meltdown in Structured Securitization Caprio, Gerard, Jr. Demirgüç-Kunt, Asli Kane, Edward J. accounting credit ratings credit risk developing countries financial crisis financial markets globalization insurance insurance company interest rates international bank investment banking investment banks liquidity loss of confidence monetary fund regulatory standards risk management safety net transparency The intensity of the crisis in financial markets has surprised nearly everyone. The authors search out the root causes of the crisis, distinguishing them from scapegoating explanations that have been used in policy circles to divert attention from the underlying breakdown of incentives. Incentive conflicts explain how securitization went wrong, why credit ratings proved so inaccurate, and why it is superficial to blame the crisis on mark-to-market accounting, an unexpected loss of liquidity, trends in globalization, and deregulation in financial markets. The authors' analysis finds disturbing implications of the crisis for Basel II and its implementation. They conclude by drawing out lessons for developing countries and identifying reforms that would improve incentives by increasing transparency and accountability in government and industry alike. 2012-03-30T07:12:35Z 2012-03-30T07:12:35Z 2010-02-01 Journal Article World Bank Research Observer 1564-6971 http://hdl.handle.net/10986/4436 CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo/ World Bank World Bank Journal Article Latin America & Caribbean East Asia and Pacific |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| topic |
accounting credit ratings credit risk developing countries financial crisis financial markets globalization insurance insurance company interest rates international bank investment banking investment banks liquidity loss of confidence monetary fund regulatory standards risk management safety net transparency |
| spellingShingle |
accounting credit ratings credit risk developing countries financial crisis financial markets globalization insurance insurance company interest rates international bank investment banking investment banks liquidity loss of confidence monetary fund regulatory standards risk management safety net transparency Caprio, Gerard, Jr. Demirgüç-Kunt, Asli Kane, Edward J. The 2007 Meltdown in Structured Securitization |
| geographic_facet |
Latin America & Caribbean East Asia and Pacific |
| description |
The intensity of the crisis in financial markets has surprised nearly everyone. The authors search out the root causes of the crisis, distinguishing them from scapegoating explanations that have been used in policy circles to divert attention from the underlying breakdown of incentives. Incentive conflicts explain how securitization went wrong, why credit ratings proved so inaccurate, and why it is superficial to blame the crisis on mark-to-market accounting, an unexpected loss of liquidity, trends in globalization, and deregulation in financial markets. The authors' analysis finds disturbing implications of the crisis for Basel II and its implementation. They conclude by drawing out lessons for developing countries and identifying reforms that would improve incentives by increasing transparency and accountability in government and industry alike. |
| format |
Journal Article |
| author |
Caprio, Gerard, Jr. Demirgüç-Kunt, Asli Kane, Edward J. |
| author_facet |
Caprio, Gerard, Jr. Demirgüç-Kunt, Asli Kane, Edward J. |
| author_sort |
Caprio, Gerard, Jr. |
| title |
The 2007 Meltdown in Structured Securitization |
| title_short |
The 2007 Meltdown in Structured Securitization |
| title_full |
The 2007 Meltdown in Structured Securitization |
| title_fullStr |
The 2007 Meltdown in Structured Securitization |
| title_full_unstemmed |
The 2007 Meltdown in Structured Securitization |
| title_sort |
2007 meltdown in structured securitization |
| publisher |
World Bank |
| publishDate |
2012 |
| url |
http://hdl.handle.net/10986/4436 |
| _version_ |
1764391352374657024 |