Acknowledgments v
Preface vii
KEYNOTE ADDRESSES
Being a Responsible Host: Supervising Foreign-Owned Banks 3
Alan Bollard
Dealing with Stress at Large and Complex Financial Institutions 17
Andrew Crockett
Changes in the Structure of the U.S. Financial System
and Implications for Systemic Risk 29
Timothy F. Geithner
FINANCIAL STABILITY—PROTECTING SOLVENCY
The Resolution of Systemic Banking System Crises 41
Stefan Ingves and David S. Hoelscher
The Deposit Insurer’s Role in Maintaining Financial Stability 59
Jean Pierre Sabourin
The IMF–World Bank Financial Sector Assessment Program:
A View from the Inside 69
Paul Kupiec
Financial Stability and Bank Solvency 83
Andrew G. Haldane, Glenn Hoggarth,
Victoria Saporta and Peter Sinclair
ix
x Contents
A Note on Financial Stability 115
Craig H. Furfine
THE COST OF INEFFICIENT RESOLUTION OF LARGE
FINANCIAL INSTITUTIONS
Impediments to Fair and Efficient Resolution of Large Banks
and Banking Crises 123
Edward J. Kane
Dealing with Financial Fragility in Transition Economies 141
John P. Bonin and Paul Wachtel
The Resolution of Systemic Banking System Crises:
TheWay Forward 159
Stefan Ingves and David S. Hoelscher
Mistakes of Bank Crisis Response 169
Randall S. Kroszner
KEY POLICY CHALLENGES IN FINANCIAL
RESOLUTION: CROSS-BORDER ISSUES
Breaking Up is Hard to Do: An Essay on Cross-Border
Challenges in Resolving Financial Groups 175
Thomas C. Baxter, Jr. and Joseph H. Sommer
“Too Big to Save” —Toward a Functional Approach to Resolving
Crises in Global Financial Institutions 193
Eva H. G. Hüpkes
Europe’s Universalist Approach to Cross-Border Bank
Resolution Issues 217
Christos Hadjiemmanuil
Comments on Financial Institution Resolution:
Cross-Border Issues 237
Chryssa Papathanassiou
KEY POLICY CHALLENGES IN FINANCIAL INSTITUTION
RESOLUTION: ADDITIONAL COMPLEXITIES
Multiple Regulators and Resolutions 253
Charles A. E. Goodhart
Contents xi
The Role of the Safety Net in Resolving Large
Financial Institutions 275
David G. Mayes
Comments on Key Policy Challenges in Financial Institution
Resolution: Additional Complexities 307
Robert R. Bliss
LESSONS FROM CASE STUDIES OF LARGE
INSOLVENCIES
BCCI & Barings: Bank Resolutions Complicated by Fraud and
Global Corporate Structure 321
Richard J. Herring
Derivatives and Systemic Risk: What Role Can the Bankruptcy
Code Play? 347
Franklin R. Edwards and Edward R. Morrison
Argentina and Uruguay in the 2000s: Two Contrasting
Experiences of Banking Crisis Resolution 365
Liliana Rojas-Suarez
Comments on Lessons from Case Studies of Large Insolvencies 391
Paola Sapienza
PLANNING FOR EFFICIENT RESOLUTION—WHERE
TO FROM HERE?
The Reserve Bank of New Zealand’s Creditor Recapitalization
(BCR) Project: An Option for Resolving Large Banks? 397
Ian Harrison
Planning for Efficient Resolution 407
Nobuo Inaba
Resolving a Large Bank: The FDIC’s Perspective 415
Arthur J. Murton
Arrangements for Financial Stability in OECD and EU countries 421
Sander Oosterloo and Jakob de Haan
xii Contents
Constructive Commitments: Communicating Plans to Impose
Losses on Large Bank Creditors 441
Gary H. Stern and Ron J. Feldman
Agenda 449