Systemic Risk

Content

1Introduction: Systemic Risk Revisited-Steps to an Integrated Approach7

2 Describing Systemic Risk16

2.1 Basic Features of Systemic Risk18

2.1.1 Systemic Risk as an Emergent Property of Global Finance19

2.1.2 Types of Financial Systems33

2.1.3 Definitions of Systemic Risk43

3 The Myth of Rational Finance: A Review of Systemic Properties of Global Finance48

3.1 System Governance55

3.2 Overconfidence in Governance Capabilities68

3.3 Learning Disabilities77

3.3.1 Addiction to Success77

3.3.2 Herding Behavior81

3.3.3 Autism83

4Understanding Systemic Risk88

4.1 An Economic Approach to Systemic Risk88

4.2 A Political Approach to Systemic Risk92

4.3 An Integrated Approach to Systemic Risk101

5Micro-Cases of Global Financial Governance Institutions109

5.1 The FSB110

5.2 The BCBS112

5.3 A Critical Examination of the FSOC115

5.3.1The Shift to Macroprudential Regulation118

5.3.2 Coordination and Designation: The FSOC124

5.3.3 Data and Information: The OFR140

5.3.4 Blaming and Shaming: The Systemic Risk Council145

5.3.5 Taming the Beast, or: Does the FSOC Mitigate Systemic Risk?147

5.3.6 Paradigm Shift or Cosmetic Enhancements?164

5.4 An Early Assessment of the ESRB168

5.4.1 Conceptual and Theoretical Perspectives172

5.4.2 The ESRB and the New European Regulatory Architecture191

5.4.3 Challenges of Post-Crisis Financial Regulatory Reform195

5.4.4 Assessment and Outlook: Viable Legal Order Beyond the State?206

5.4.5 Central Conclusions208

6What's Democracy Got to Do with it-a Crisis of Democracy?212

7What's Law Got to Do with it?227

Appendix235

References248

Index275

Helmut Willke ist Professor für Global Governance an der Zeppelin-Universität Friedrichshafen. Eva Becker und Carla Rostásy sind dort wissenschaftliche Mitarbeiterinnen.