Introduction to 'Basel III and Beyond'
The Big Financial Crisis
The Policy Response: From the G20 Requests to the FSB Roadmap; Working Towards the Proposals of the Basel Committee
The New Definition of Regulatory Capital
A New Framework for the Trading Book
Counterparty Credit Risk and Other Risk-Coverage Measures
Tools for Mitigating the Procyclicality of Financial Regulation
The Regulatory Leverage Ratio
The New Framework for Liquidity Risk
The Discipline of Credit Rating Agencies
Systemically Important Banks
Regulating Remuneration Schemes in Banking
Crisis Management and Resolution
The Impact of the New Regulatory Framework
A Brazilian Perspective on Basel III
A New Institutional Framework for Financial Regulation and Supervision
Structural Regulation Redux: The Volcker Rule
The Changing Uses of Contingent Capital under the Basel III Framework
This article was first published as a chapter in Basel III and Beyond, by Risk Books.
On the occasion of the second anniversary of the bankruptcy of Lehman Brothers, a Financial Times columnist compared the date of September 15, 2008 (9/15 in American jargon), to the most eventful date in the recent history of mankind: September 11, 2001 (for ever 9/11). The main thrust of the article (Rachman 2010) was that the consequences of the collapse of Lehman Brothers Inc. will have a more lasting impact on the world’s geopolitical framework than the infamous terrorist attacks in Manhattan. In the end, the columnist argued, while the 9/11 attacks did not shake the US’s role as the world’s only superpower, the global financial crisis will probably be remembered for ever as the beginning of the end of American global economic and financial dominance. Be this as it may, it is nonetheless unquestionable that the importance and the impact of the failure of Lehman Brothers on the global economy in general and global financial markets in particular cannot be overstated.
The Lehman insolvency represents the classic (and incredibly disruptive) coordination failure scenario between national