Crisis: Cause, Containment and Cure explains how the global financial
crisis of 2007 to 2009 came about, how it is being contained and what steps should be
taken to prevent such a crisis from happening again.
Written by the Director of the Banking Sector at the Financial Services
Authority, it gives a first-hand view of policy making combined with rigorous economic
analysis presented in an easily readable style. It is analytical – not anecdotal –
based on up-to-date economic theory and recent policy pronouncements, including both
macroeconomic and financial sector aspects. There are numerous books on the crisis but few
which have the breadth, analytical rigour and first-hand experience of policy-making
offered here by Dr. Huertas.
Enhanced with diagrams to illustrate key concepts, this book will be a valuable resource
for banks, central banks, public policy makers, banking regulators, law firms, securities
associations, finance ministries, students of banking, finance and monetary economics and
indeed anyone who seeks a balanced, comprehensive, global authoritative view of the
crisis.
THOMAS F. HUERTAS is Director, Banking Sector for the Financial
Services Authority, UK. Previously, he worked for Citigroup for nearly 30 years in various
roles, including senior policy and business positions. He has written extensively on the
current crisis, credit derivatives, insurance and retail banking.
Table of Contents
Introduction
PART I: CAUSE
Rational Exuberance? The Great Moderation and the Search for Yield
Fair Weather Finance
PART II: CONTAINMENT
Conditional Containment
Moving Toward Meltdown: The Failure of Lehman Brothers and its Aftermath
Unconditional Containment
PART III: CURE
Better Resolution
Better Deposit Guarantee Schemes
Better Macroeconomic Policy
Better Regulation
Better Supervision
Conclusion: Toward a Globally Consistent Framework
Notes
References
Index
240 pages, Hardcover