The Future of Finance

Foreword.
 
Preface.
 
Introduction.
 
Market Instability.
 
Derivatives and Mathematical Modeling.
 
Senior Management and "Staying in the Game".
 
Macro-prudential Financial Regulation and Cycle-Proof Regulation.
 
The Way Forward.
 
Conclusion.
 
Part I: A Review of the Financial Crash.
 
Chapter 1: Globalization, Emerging Markets, and the Savings Glut.
 
Globalization.
 
A Series of Emerging Market Crises.
 
Low Yield Environment Due to New Players on the Financial Markets.
 
Artificially Low Exchange Rates.
 
Recommendations and Solutions for Global Imbalances.
 
Chapter 2: The Rise of Derivatives and Systemic Risk.
 
Systemic Risk.
 
Derivative Market Systemic Risk: Solutions for Improvement.
 
Chapter 3: The "Too-Big-To-Fail" Bank, Moral Hazard, and Macroprudential Regulation.
 
Banks and Moral Hazard.
 
Addressing Too-Big-to Fail: Mitigating Moral Hazard Risk.
 
Macroprudential Regulation: Regulating Bank Systemic Risk.
 
Conclusion.
 
Chapter 4: Corporate Governance and Remuneration in the Banking Industry.
 
Bonuses and a Moral Dilemma.
 
A Distorted Remuneration Model.
 
Unsuitable Personal Behavior.
 
Conclusion.
 
Chapter 5: Bank Capital Safeguards: Additional Capital Buffers and Reverse Convertibles.
 
Capital Issues in a Bear Market.
 
Looking for New Capital Instruments.
 
Counter-Cyclical Capital Management.
 
Chapter 6: Economic Theories under Attack.
 
A Belief in Free and Self Adjusting Markets.
 
Modigliani and Miller.
 
Markowitz and Diversification Tested.
 
Minsky Once Again.
 
Lessons to Be Learned for Central Banks.
 
Conclusion.
 
Part II: New Models for Banking and Investment.
 
Chapter 7: Long-Term Sustainable Investment Guidelines.
 
The Investment

Moorad Choudhry has over twenty-one years experience in investment banking and was latterly head of treasury at Europe Arab Bank. He was previously head of treasury at KBC Financial Products and vice president in structured finance services at JPMorgan Chase Bank. Dr. Choudhry is Visiting Professor at the Department of Economics, London Metropolitan University, and Senior Research Fellow at the ICMA Centre, University of Reading. He is a Fellow of the ifs-School of Finance and a Fellow of the Chartered Institute for Securities and Investment. He is on the Editorial Board of the Journal of Structured Finance and the Editorial Advisory Board of American Securitization.
 
Gino Landuyt is Head of Sales at Conduit Capital in London. Prior to that, he was head of insti-tutional structured sales at ING Bank in Brussels, and worked with KBC Bank N.V. in their Brussels, Frankfurt, New York, and London offices. Landuyt has an MA in applied economic sciences from the State University of Antwerp and an MBA from the Catholic University of Antwerp.