Engineering the Financial Crisis - 9780812243574

Engineering the Financial CrisisSystemic Risk and the Failure of Regulation\nAuthor(s): Jeffrey Friedman, Wladimir Kraus\nFormat: Hardback\nPublisher: University of Pennsylvania Press, United States\nImprint: University of Pennsylvania Press\nISBN-13: 9780812243574, 978-0812243574\nSynopsis\nThe 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.\n In one of the first studies critically to examine the Basel Accords, Engineering the Financial Crisis 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.