The 2007 Meltdown in Structured Securitization : Searching for Lessons, Not Scapegoats

Caprio, Gerard, Jr. ; Demirgü ; ç ; -Kunt, Aslı ; Kane, Edward J.

Washington, DC:World Bank

关键词: ACCOUNTABILITY;    ACCOUNTING PRINCIPLES;    AFFILIATES;    AMOUNT OF CAPITAL;    ARBITRAGE;   

DOI  :  10.1596/1813-9450-4756
RP-ID  :  WPS4756

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

The intensity of recent turbulence infinancial markets has surprised nearly everyone. This papersearches out the root causes of the crisis, distinguishingthem from scapegoating explanations that have been used inpolicy circles to divert attention from the underlyingbreakdown of incentives.Incentive conflicts explain howsecuritization went wrong, why credit ratings proved soinaccurate, and why it is superficial to blame the crisis onmark-to-market accounting, an unexpected loss of liquidity,or trends in globalization and deregulation in financialmarkets. The analysis finds disturbing implications of thecrisis for Basel II and its implementation. The paper arguesthat the principal source of financial instability lies incontradictory political and bureaucratic incentives thatundermine the effectiveness of financial regulation andsupervision in every country in the world.The paperconcludes by identifying reforms that would improveincentives by increasing transparency and accountability ingovernment and industry alike.