The crash sonata in D major
Abstract
The current us-made financial crisis has been exacerbated by the mark-to-market rule, by pro-cyclical bank capital requirements, by fragility in the originate-to-distribute system, and by the volume of fraudulent mortgages in the usa, which have distorted profit and loss distributions and confounded all prediction models. the monetary value of such frauds in 2006–07 is estimated to reach $100–120bn. like most crises since the 1980s, the present one is also due to regulatory mistakes, excessive leverage and concentration in real estate investments. while previous crises tended to be localised, the most recent turmoil has unfortunately had a global impact.
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Author's Biography
Giorgio Szegö is Professor Emeritus of Financial Economics at the University of Rome ‘La Sapienza’ and President of the Association for Banking and Finance at the University of Lugano. He founded the Journal of Banking and Finance in 1977 and remained Managing Editor until retirement in 2007. He is the author of more than 300 scholarly papers and books. He has been a consultant for major international organisations such as the International Monetary Fund, World Bank and the Organisation for Economic Cooperation and Development, and has served on the boards of major banks and markets.
Citation
Szegö, Giorgio (2010, January 1). The crash sonata in D major. In the Journal of Risk Management in Financial Institutions, Volume 3, Issue 1. https://doi.org/10.69554/ETAY2729.
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