Beschreibung
InhaltsangabeMortgage defaults, together with excessivedebt and weak regulation, ultimately led to a major financial crisis in the United States in 2008. But how exactly did a steep drop in U.S. housing prices result in a severe financial crisis throughout the world? What did the U.S. government do right and what did it do wrong in responding to this financial crisis? And perhaps most importantly, what actions should be taken in the future to resolve this financial crisis and help prevent others from happening? In Too Big to Save?, Robert Pozen answers these and other key questions as he presents his vision for repairing the U.S. financial system. Each chapter of this timely book analyzes the impact of the financial crisis on a major part of the U.S. financial system. Pozen first explains the globalization of the financial crisis through the sale of mortgagebacked securities around the world. He suggests how the securitization process should be reformed, including new approaches to credit rating agencies and credit default swaps. Second, he assesses the impact of the financial crisis on the stock and bond markets. He criticizes the broad government guarantees of bank debt and money market funds, and calls for reinstating the incentives for large debt holders to scrutinize the condition of financial institutions. Third, he evaluates the federal bailout of financial institutions by buying their stock and toxic assets. He shows how these bailouts constitute "one-way capitalism" whereby taxpayers bear most of the losses but stand to receive little of any potential gains. Finally, he outlines what can and cannot be achieved realistically through international financial cooperation. For the United States, he proposes a concrete plan to address risks to the entire financial system and strengthen the functional regulation of each segment of the financial services industry. Too Big to Save? will give you a sound framework to analyze the daily barrage of information about the financial crisis. It offers a blueprint for restoring the financial system without repeating the mistakes of the past.
Inhaltsverzeichnis
Foreword. Acknowledgments. The Financial Crisis: A Parable. Part I: The United States Housing Slump and the Global Financial Crisis. Chapter 1 The Rise and Fall of U.S. Housing Prices. Chapter 2 Fannie and Freddie. Chapter 3 Mortgage Securitization in the Private Sector. Chapter 4 Credit Default Swaps and Mathematical Models. Part II: Impact on Stock and Bond Markets. Chapter 5 Short Selling, Hedge Funds and Leverage. Chapter 6 Capital Requirements at Brokers and Banks. Chapter 7 Impact on Short-Term Lending. Chapter 8 Insuring Deposits and Money Market Funds. Part III: Evaluating the Bailout Act of 2008. Chapter 9 Why and How Treasury Recapitalized So Many Banks. Chapter 10 Increasing Lending Volumes and Removing Toxic Assets. Chapter 11 Limiting Executive Compensation and Improving Boards of Directors. Chapter 12 Were Accounting Rules an Important Factor Contributing to the Financial Crisis? Part IV: The Future of the American Financial System. Chapter 13 The International Implications of the Financial Crisis for the United States. Chapter 14 The New Structure of U.S. Financial Regulation. Notes. Glossary. About the Author. Index.
Autorenporträt
Robert Pozen is Chairman of MFS Investment Management(r), which manages over $150 billion in assets for individual and institutional investors. He currently is a senior lecturer at the Harvard Business School and was chairman of the SEC advisory committee on improving financial reporting, 2007 through 2008. In 2001 and 2002, Pozen served on President Bush's Commission to Strengthen Social Security. In 2003, he served as Secretary of Economic Affairs for Massachusetts Governor Mitt Romney. Pozen was also formerly vice chairman of Fidelity Investments and president of Fidelity Management & Research Company. He has published a broad variety of articles in the Wall Street Journal, the New York Times, and the Financial Times of London.
