4,809
Views
23
CrossRef citations to date
0
Altmetric
Original Articles

The regulator's conundrum. How market reflexivity limits fundamental financial reform

&

References

  • Akerlof, G. and Shiller, R. (2009) Animal Spirits. How Human Psychology Drives the Economy, and Why it Matters for Global Capitalism, Princeton, NJ: Princeton University Press.
  • André, P., Cazavan-Jeny, A., Dick, W., Richard, C. and Walton, P. (2009) ‘Fair value accounting and the banking crisis in 2008: shooting the messenger’, Accounting in Europe 6(1): 3–24.
  • Baker, A. (2013) ‘The new political economy of the macroprudential ideational shift’, New Political Economy 18(1): 112–39.
  • Bank for International Settlements (2008) Addressing Financial System Procyclicality: A Possible Framework. Note for the FSF Working Group on Market and Institutional Resilience, Basel: BIS.
  • Banque de France (2008) Financial Stability Review no. 11. Special Issue on Liquidity, February 2008, Paris: Banque de France.
  • Basel Committee on Banking Supervision (2000) Report to G7 Finance Ministers and Central Bank Governors on International Accounting Standards, Basel: BCBS.
  • Basel Committee on Banking Supervision (2009) Comments on Exposure Draft – ED/2009/7 ‘Financial Instruments: Classification and Measurement, Basel: BCBS.
  • Basel Committee on Banking Supervision (2010) Basel III: A global regulatory framework for more resilient banks and banking systems (December 2010), Basel: BCBS.
  • Basel Committee on Banking Supervision (2013) Basel III: The liquidity coverage ratio and liquidity risk monitoring tools, Basel: BCBS.
  • Beckert, J. (2016) Imagined Futures. Fictional Expectations and Capitalist Dynamics, Cambridge, MA: Harvard University Press.
  • Bofinger, P. (2009) ‘Public sector credit rating agencies = more stable financial architecture’, in S. Burke and W. Puschra (eds) Re-Defining the Global Economy, New York, NY: Friedrich Ebert Stiftung, pp. 33–6.
  • Bonner, C. and Hilbers, P. (2014) ‘Global liquidity regulation – why did it take so long?’, DNB Working Paper, No. 455, January 2015, Amsterdam: De Nederlandsche Bank.
  • Borio, C., Drehmann, M. and Tsatsaronis, K. (2012) ‘Stress-testing macro stress testing: does it live up to expectations?’, BIS Working Papers, No. 369, Basel: BCBS.
  • Botzem, S. (2013) ‘Continuity of expert rule: global accountancy regulation after the crisis’, in M. Moschella and E. Tsingou (eds) Great Expectations, Slow Transformations. Incremental Change in Post-Crisis Regulation, Colchester: ECPR Press, pp. 149–72.
  • Brunnermeier, M., Crockett, A., Goodhart, C., Persaud, A.D. and Shin, H. (2009) The Fundamental Principles of Financial Regulation, Geneva: International Center for Monetary and Banking Studies.
  • Carpenter, D. and Moss, D. A. (eds) (2012) Preventing Regulatory Capture. Special Interest Influence and How to Limit It, New York, NY: Cambridge University Press.
  • Caruana, J. (2011) Basel III: New Strains and Old Debates, Speech at the Bank of Portugal Conference on Basel III, Lisbon, 14 October, Basel: BCBS; accessed at http://www.bis.org/speeches/sp111014.htm, 4 July 2016.
  • Coeuré, B. (2012) The Importance of Money Markets. Speech at the Morgan Stanley 16th Annual Global Investment Seminar, Tourrettes, 16 June, Frankfurt am Main: ECB; accessed at https://www.ecb.europa.eu/press/key/date/2012/html/sp120616.en.html, 17 June 2016.
  • Coffee, J. C. (2011) ‘Ratings reform: the good, the bad, and the ugly’, Harvard Business Law Review 1(1): 231–78.
  • Committee of European Banking Supervisors (2008) CEBS's Comments on the European Commission's Public Consultation on Credit Rating Agencies, London: CEBS.
  • Committee of European Securities Regulators (2006) CESR's Report to the European Commission on the Compliance of Credit Rating Agencies with the IOSCO Code, Paris: CESR.
  • Committee of European Securities Regulators (2008) CESR's Response to the Consultation Document of the Commission Services on a Draft Proposal for a Directive/Regulation on Credit Rating Agencies, Paris: CESR.
  • Committee of European Securities Regulators (2009) Application of and Disclosures Related to the Reclassification of Financial Instruments, Paris: CESR.
  • Committee on the Global Financial System (2008) ‘Ratings in structured finance: what went wrong and what can be done to address shortcomings?’, CGFS Papers, No. 32, July, Basel: Bank for International Settlements.
  • Committee on the Global Financial System (2009) ‘The role of valuation and leverage in procyclicality’, CGFS Papers, No. 34, April, Basel: Bank for International Settlements.
  • Crockett, A. (2008) ‘Market liquidity and financial stability’, Banque de France Financial Stability Review, Paris: Banque de France, pp. 13–8.
  • Daníelsson, J. (2013) ‘Towards a more procyclical financial system’, VoxEU; accessed at http://voxeu.org/article/towards-more-procyclical-financial-system, 17 June 2016.
  • Deb, P., Manning, M., Murphy, G., Penalver, A. and Toth, A. (2011) ‘Whither the credit ratings industry?’, Bank of England Financial Stability Paper, No. 9, London: Bank of England.
  • Di Noia, C., Micossi, S., Carmassi, J. and Peirce, F. (2009) Keep It Simple. Policy Responses to the Financial Crisis, Brussels: CEPS.
  • Enria, A., Cappiello, L., Dierick, F., et al. (2004) Fair Value Accounting and Financial Stability, Frankfurt: ECB.
  • ESMA (2016) Consultation Paper. Guidelines on the validation and review of Credit Rating Agencies’ methodologies, Paris: ESMA.
  • European Banking Authority (2015) Subject: The EBA's Views on the Adoption of IFRS 9 Financial Instruments (IFRS 9), London: EBA.
  • European Banking Federation (2009) Comments on ‘IASB Exposure Draft “Financial Instruments: Classification and Measurement”’, Brussels: EBF.
  • European Central Bank (2004) The Impact of Fair Value Accounting on the European Banking Sector: A financial Stability Perspective, Frankfurt: ECB.
  • European Commission (2006) Communication from the Commission on Credit Rating Agencies, Brussels: EC.
  • European Commission (2008) Consultation Document – Proposal for a Regulatory Framework on CRAs, Brussels: EC.
  • European Commission (2009) Response of the EC to the Letter of the Chairman of the IASCF Concerning IFRS 9 Financial Instruments. Brussels: EC.
  • European Commission (2011) Proposal for Regulation of the European Parliament and of the Council Amending Regulation (EC) No 1060/2009 on Credit Rating Agencies, Brussels: EC.
  • European Commission (2014) Economic Review of the Financial Regulation Agenda, Commission Staff Working Document, Brussels: EC.
  • European Commission (2016) Proposal for a Regulation of the European Parliament and of the Council amending Regulation (EU) No 575/2013, Brussels: EC.
  • European Securities and Markets Authority (2016) Discussion Paper – On the Validation and Review of Credit Rating Agencies’ Methodologies, Paris: ESMA.
  • Finance Watch (2016) Representation of the Public Interest in Banking, Brussels: Finance Watch.
  • Financial Services Authority (2009a) A regulatory Response to the Global Banking Crisis, Discussion paper 2009/02, London: FSA.
  • Financial Services Authority (2009b) The Turner Review, London: FSA.
  • García Alcubilla, R. and Ruiz del Pozo, J. (2012) Credit Rating Agencies on the Watch List. Analysis of European Regulation, Oxford: Oxford University Press.
  • Gelpern, A. and Gerding, E. (2016) ‘Rethinking the Law in “Safe Assets”’, in R. P. Buckley, E. Avgouleas and D. W. Arner (eds) Reconceptualising Global Finance and Its Regulation, New York, NY: Cambridge University Press, pp. 159–90.
  • Gerding, E. (2014) Law, Bubbles, and Financial Regulation, London and New York, NY: Routledge.
  • Goldbach, R. (2015) ‘Asymmetric influence in global banking regulation’, Review of International Political Economy 22(6): 1087–127.
  • Gomes, T. and Wilkins, C. (2013) ‘The Basel III liquidity standards: an update’, Bank of Canada Stability Review, June 2013: 37–48.
  • Gonzales, F., Haas, F., Johannes R., et al. (2004) Market Dynamics Associated with Credit Rating Agencies. A Literature Review, ECB Occasional Paper Series no. 17, June 2004, Frankfurt am Main: ECB.
  • Goodhart, C. (2009a) ‘Procyclicality and financial regulation’, Banco de España Estabilidad Financiera 5( 16): 9–20.
  • Goodhart, C. (2009b) The Regulatory Response to the Financial Crisis, Northampton, MA: Edward Elgar Publishing.
  • Goodhart, C. (2011) The Basel Committee on Banking Supervision – A History of the Early Years 1974 to 1997, New York, NY: Cambridge University Press.
  • Goodhart, C. (2013) ‘Ratio controls need reconsideration’, Journal of Financial Stability 9(3): 445–50.
  • Helleiner, E. (2014) The Status Quo Crisis. Global Financial Governance After the 2008 Financial Meltdown, Oxford: Oxford University Press.
  • Hiss, S. and Nagel, S. (2014) ‘Credit rating agencies’, in D. K. Mügge (ed) Europe and the Governance of Global Finance, Oxford: Oxford University Press, pp. 127–49.
  • Hoogervorst, H. (2011) Address to European Parliament ECON Committee, 3 October 2011, London: IASCF; accessed at http://www.ifrs.org/Alerts/Conference/Documents/HHoogervorst-ECON-speech-October-2011.pdf, 4 July 2016.
  • House of Commons (2012) Oral Evidence taken before the Treasury Committee – Inquiry into Credit Rating Agencies – 29 February 2012; accessed at http://www.publications.parliament.uk/pa/cm201012/cmselect/cmtreasy/uc1866-i/uc186601.htm, 17 June 2016.
  • Howarth, D. and Quaglia, L. (2013) ‘Banking on stability: the political economy of new capital requirements in the European Union’, Journal of European Integration 35(3): 333–46.
  • Hunt, J.P. (2009) 'One cheer for credit rating agencies: how the mark-to-market accounting debate highlights the case for rating-dependent capital regulation', South Carolina Law Review 60(749): 749–99.
  • International Accounting Standards Board (2009a) Financial Instruments: Classification and Measurement. Basis for Conclusions Exposure Draft ED/2009/7, London: IASCF.
  • International Accounting Standards Board (2009b) International Financial Reporting Standard 9: Financial Instruments, London: IASCF.
  • International Monetary Fund (2011) Global Financial Stability Report - April 2011 - Chapter 2: How to address the systemic part of liquidity?, Washington, DC: IMF.
  • International Monetary Fund (2012) Global Financial Stability Report – April 2012 – Chapter 3: Safe Assets: Financial System Cornerstone?, Washington, DC: IMF.
  • International Organization of Securities Commissions (2004) Code of conduct fundamentals for credit rating agencies, Madrid: IOSCO.
  • Kastner, L. (2014) ‘“Much ado about nothing?” Transnational civil society, consumer protection and financial regulatory reform’, Review of International Political Economy 21(6): 1313–1345.
  • Keynes, J. M. (1964 [1936]) The General Theory of Employment, Interest and Money, New York, NY: Harcourt Brace.
  • Kowalik, M. (2013) ‘Basel liquidity regulation: was it improved with the 2013 revisions?’, Economic Review – Federal Reserve Bank of Kansas City, 1 April 2013, pp. 67–87.
  • Kruck, A. (2011) Private Ratings, Public Regulations. Credit Rating Agencies and Global Financial Governance, Basingstoke: Palgrave Macmillan.
  • Lall, R. (2012) ‘From failure to failure: the politics of international banking regulation’, Review of International Political Economy 19(4): 609–38.
  • Lockwood, E. (2015) ‘Predicting the unpredictable: value-at-risk, performativity, and the politics of financial uncertainty’, Review of International Political Economy 22(4): 719–56.
  • MacKenzie, D. (2006) An Engine, Not a Camera, Cambridge, MT: The MIT Press.
  • Masters, B. and Murphy, M. (2011) ‘Regulators poised to soften new bank rules’, Financial Times, 6 September, p. 15.
  • Masters, B. and S. Nasipour (2013) ‘Basel move aims to stoke recovery’, Financial Times, 8 January, p. 15.
  • Mattli, W. and Büthe, T. (2005) ‘Accountability in accounting? The politics of private rule-making in the public interest’, Governance 18(3): 399–429.
  • McPhilemy, S. (2013) ‘Formal rules versus informal relationships: prudential banking supervision at the FSA before the crash’, New Political Economy 18(5): 748–767.
  • Minsky, H. P. (2008 [1986]) Stabilizing and Unstable Economy, New York, NY: McGrawHill.
  • Moody's (2016) Moody's Response to ESMA's Discussion PaperOn the Validation and Review of Credit Rating Agencies’ methodologies, London: Moody's.
  • Morris, C. (2008) The Two Trillion Dollar Meltdown: Easy Money, High Rollers, and the Great Credit Crash, New York, NY: Public Affairs.
  • Moschella, M. and Tsingou, E. (eds) (2013) Great Expectations, Slow Transformations. Incremental Change in Post-Crisis Regulation, Colchester: ECPR Press.
  • Mügge, D. K. (2013) ‘Resilient neo-liberalism in European financial regulation’, in V. Schmidt and M. Thatcher (eds) Resilient Liberalism in Europe's Political Economy, Cambridge, NY: Cambridge University Press, pp. 201–25.
  • Mügge, D. K. and Perry, J. (2014) ‘The flaws of fragmented financial standard setting: why substantive economic debates matter for the architecture of global governance’, Politics and Society 42(2): 194–222.
  • Mügge, D. K. and Stellinga, B. (2015) ‘The unstable core of global finance: Contingent valuation and governance of international accounting standards’, Regulation and Governance 9(1): 47–62.
  • Noyer, C. (2012) ‘Basel III - CRD4: impact and stakes’, Speech Presented at the ACP Conference, Paris, 27 June, Basel: Bank for International Settlements, pp. 1–3; accessed at http://www.bis.org/review/r120703b.pdf, 17 June 2016.
  • Organization for Economic Cooperation and Development (2015) ‘How to restore a healthy financial sector that supports long-lasting, inclusive growth?’, OECD Economics Department Policy Notes, no. 27, June.
  • Pagliari, S. (2012a) ‘How can we mitigate capture in financial regulation?’, in S. Pagliari (ed) Making Good Financial Regulation. Towards a Policy Response to Regulatory Capture, Guildford: Grosvenor House Publishing Ltd, pp. 1–49.
  • Pagliari, S. (2012b) ‘Who governs finance? The shifting public-private divide in the regulation of derivatives, rating agencies and hedge funds’, European Law Journal 18(1): 44–61.
  • Pagliari, S. and Young, K. (2014) ‘Leveraged interests: financial industry power and the role of private sector coalitions’, Review of International Political Economy 21(3): 575–610.
  • Partnoy, F. (2009) ‘Overdependence on credit ratings was a primary cause of the crisis’, in D. D. Evanoff, P. Hartmann and G. G. Kaufman (eds) The First Credit Market Turmoil of the 21st Century, Hackensack, NJ: World Scientific Publishing, pp. 175–91.
  • Paudyn, B. (2013) ‘Credit rating agencies and the sovereign debt crisis: performing the politics of creditworthiness through risk and uncertainty’, Review of International Political Economy 20(4): 788–818.
  • Perry, J. and Nölke, A. (2006) ‘The political economy of International Accounting Standards’, Review of International Political Economy 13(4): 559–86.
  • Persaud, A. (2015) Reinventing Financial Regulation: A Blueprint for Overcoming Systemic Risk, New York, NY: Apress.
  • Power, M. (2009) ‘The risk management of nothing’, Accounting, Organizations and Society 34(6–7): 849–55.
  • Romano, R. (2014) ‘For diversity in the international regulation of financial institutions: critiquing and recalibrating the Basel architecture’, Yale Journal On Regulation 31(1): 1–76.
  • Sarkozy, N. (2008) Speech at the Sixty-Third Session of the United Nations General Assembly, 23 September, New York, NY: UN; accessed at http://www.un.org/ga/search/view_doc.asp?symbol=A/63/PV.5, 30 June 2016.
  • Schwarz, C., Karakitsos, P., Merriman, N. and Studener, W. (2014) ‘Why accounting matters. A central bank perspective’, ECB Occasional Paper Series, No. 153, May, Frankfurt am Main: ECB.
  • Sinclair, T. (2010) ‘Round Up the Usual Suspects: Blame and the Subprime Crisis’, New Political Economy 15(1): 91–107.
  • Singer, D. A. (2007) Regulating Capital: Setting Standards for the International Financial System, Ithaca, NY: Cornell University Press.
  • SOMO (2016) A Structural Problem in the Shadows, Amsterdam: SOMO.
  • Soros, G. (2008) The New Paradigm for Financial Markets: The Credit Crisis of 2008 and What It Means, New York, NY: PublicAffairs.
  • Standard & Poor's (2008) Response – Proposal for a Regulatory Framework for CRAs and Embedded Ratings Policy Options, New York, NY: S&P.
  • Stellinga, B. (2014) ‘Accounting standards’, in D. K. Mügge (ed) Europe and the Governance of Global Finance, Oxford: Oxford University Press, pp. 78–96.
  • Stigler, G.J. (1971) 'The theory of economic regulation', The Bell Journal of Economics and Management Science 2(1): 3–21.
  • Stiglitz, J. (2010) Freefall, New York, NY: W.W. Norton.
  • Sy, A. (2009) ‘The systemic regulation of credit rating agencies and rated markets’, IMF Working Papers, 09/129, Washington, DC: IMF.
  • Tait, N. and Sanderson, R. (2009) ‘EU Delays adoption of accounting rule changes’, Financial Times, 13 November, p. 19.
  • Tarullo, D. K. (2008) Banking on Basel. The Future of International Financial Regulation, Washington, DC: Peterson Institute for International Economics.
  • Turner, A. (2010) Banks are Different: Should Accounting Reflect that Fact? Speech Given at the ICAEW, London, 21 January, London: Deloitte; accessed at http://www.iasplus.com/en/binary/uk/1001turnerspeech.pdf, 4 July 2016.
  • Turner, A. (2015) Between Debt and the Devil: Money, Credit, and Fixing Global Finance, Princeton, NJ: Princeton University Press.
  • Underhill, G. R. D. (2015) ‘The emerging post-crisis financial architecture: The path-dependency of ideational adverse selection’, The British Journal of Politics and International Relations 17(3): 1–33.
  • Wagner, W. (2013) ‘Regulation has to come to terms with the endogenous nature of liquidity’, Duisenberg School of Finance Policy Briefs, no. 24, February, Amsterdam: Duisenberg School of Finance.
  • Warwick Commission (2009) In Praise of Unlevel Playing Fields, Coventry: The University of Warwick.
  • White, L.J. (2010) ‘Markets: The Credit Rating Agencies’, The Journal of Economic Perspectives 24(2): 211–26.
  • Young, K. L. (2012) ‘Transnational regulatory capture? An empirical examination of the transnational lobbying of the Basel Committee on Banking Supervision’, Review of International Political Economy 19(4): 663–88.