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Engineering the Financial Crisis : Systemic Risk and the Failure of Regulation by Jeffrey Friedman and Wladimir Kraus is a nonfiction available to read on EtoBox.

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<p>The financial crisis has been blamed on reckless bankers, irrational exuberance, government support of mortgages for the poor, financial deregulation, and expansionary monetary policy. Specialists in banking, however, tell a story with less emotional resonance but a better correspondence to the evidence: the crisis was sparked by the international regulatory accords on bank capital levels, the Basel Accords.<br><br>In one of the first studies critically to examine the Basel Accords, <i>Engineering the Financial Crisis</i> reveals the crucial role that bank capital requirements and other government regulations played in the recent financial crisis. Jeffrey Friedman and Wladimir Kraus argue that by encouraging banks to invest in highly rated mortgage-backed bonds, the Basel Accords created an overconcentration of risk in the banking industry. In addition, accounting regulations required banks to reduce lending if the temporary market value of these bonds declined, as they did in 2007 and 2008 during the panic over subprime mortgage defaults.<br><br>The book begins by assessing leading theories about the crisis&mdash;deregulation, bank compensation practices, excessive leverage, "t

Who reads Engineering the Financial Crisis : Systemic Risk and the Failure of Regulation?

Author

Jeffrey Friedman and Wladimir Kraus

Publisher

University of Pennsylvania Press, Inc.

Published

2011

Language

EN

ISBN

9781283897990

Category

nonfiction

Subjects

Business, Political Science, Economics

Rating

4.33 / 5 (22 ratings)

Updated

2026-03-14