scholarly journals Treating Apples Like Oranges

2019 ◽  
Vol 6 (2) ◽  
pp. 453-474
Author(s):  
Gregory Butz
Keyword(s):  
Financial Crisis ◽  
Great Recession ◽  
Private Equity ◽  
Business Models ◽  
Small Community ◽  
Community Banks ◽  
Wall Street ◽  
The Great Recession ◽  
Equity Funds ◽  
Volcker Rule

In response to the Financial Crisis of 2008 and the Great Recession that followed, Congress passed the Dodd–Frank Wall Street Reform and Con- sumer Protection Act in 2010. The Volcker Rule is a controversial section of the Dodd–Frank Act that prohibits all banks, no matter their size, from pro- prietary trading and entering into certain relationships with private equity funds. But the Volcker Rule forces banks to incur significant costs to ensure compliance. While Big Banks have the capital and infrastructure to comply with the Volcker Rule, small Community Banks often do not. This gives Big Banks an unfair competitive advantage over Community Banks. However, re- cently there has been renewed interest in the Volcker Rule, particularly regard- ing its effects on Community Banks. Both the legislative and executive branches are calling for changes to the Volcker Rule. But there is no consen- sus on how the Volcker Rule should be changed and what types of financial institutions those changes should affect. This Article will explore this issue. First, this Article will discuss the background of the Financial Crisis, Great Recession of 2008, Dodd–Frank, and the Volcker Rule. Second, this Article differentiates between the business models of Big Banks and Community Banks. Third, this Article examines the Volcker Rule’s effect on Community Banks. Fourth, this Article will consider recent proposals for changes to the Volcker Rule by the House of Representatives, Senate, and the Department of Justice. Finally, this Article will argue that Community Banks should be ex- empted from the Volcker Rule, preferably by a bill recently proposed by the Senate Banking Committee.

scholarly journals Transnational representation of a gendered recession in corporate dramas

2020 ◽  
pp. 136754942091986
Author(s):  
Elena Oliete-Aldea
Keyword(s):  
Financial Crisis ◽  
Great Recession ◽  
Global Financial Crisis ◽  
Female Characters ◽  
Wall Street ◽  
The Great Recession ◽  
Lehman Brothers ◽  
The One ◽  
The Global Financial Crisis ◽  
Special Relevance

The cinematic depiction of the financial crisis has centred on the explanation of the causes and consequences of the global recessionary scenario in which gender acquires special relevance. My aim in this article is to carry out a hitherto unaddressed transnational analysis of corporate dramas. More specifically, I elicit the commonalities as well as local specificities that different Western cinematographies show when tackling gendered recessionary discourses on ‘mancession’ and ‘austerity’. Films such as The Last Days of Lehman Brothers (Samuels, 2009, BBC), Money Never Sleeps (Stone, 2010), The Company Men (J. Wells, 2010) and The Big Short (McKay, 2015) have, on the one hand, aligned with nostalgic and retro-sexist discourses by focusing on male suffering to confront the recession while relegating female characters as emotional companions of the male hero. On the other hand, the representation of female characters in these films has also put to the test the inconsistencies of neoliberal discourses when analysed from the perspective of genre. To illustrate the transnational dimension of the ‘narrated’ impact of the ‘Global Financial Crisis’ in different scenarios, I compare a US Wall Street film and a Spanish corporate drama of the Great Recession: Margin Call (J Chandor, 2011, USA) and The Tip of the Iceberg (La punta del iceberg, D Cánovas, 2016, Spain).

The Great Financial Crisis: an Ethical Rejoinder

2012 ◽  
Vol 33 (01) ◽  
pp. 19-32 ◽  
Author(s):  
David Charles Merrill
Keyword(s):  
Financial Crisis ◽  
Market Economy ◽  
Great Recession ◽  
Ethical Question ◽  
Heterodox Economics ◽  
Ethical Philosophy ◽  
The Great Recession ◽  
The Past ◽  
Modern Economy ◽  
Radical Reconstruction

The Great Financial Crisis that broke in 2008 and the Great Recession that followed has led many to question the very structure of contemporary economies. Some argue that the economic model of the past forty years is now broken. Criticism has also been directed at the orthodoxies of economics. For example, neoclassical equilibrium economics, the mainstream economics of the day, is accused of failing to understand some of the most basic aspects of the modern economy (debt and money), of supporting policies that have led to the economic breakdown (deregulation), and of failing to see the crisis coming (Bezemer 2012, Keen 2011). Consequently, heterodox thinking in economics is getting a hearing as never before. Heterodox economics offers itself as the requisite radical reconstruction of the science of economics and also proposes policies for the radical reconstruction of the major economics.Yet to talk of the reconstruction of the modern market economy is at the same time to raise the ethical question: what shape ought the market economy to take? Heterodox economics may acutely analyse the inadequacies of real economies and propose plausible reforms, but as an essentially descriptive science there will be limits on its ability to state what ought to be. Rather, what is required seems to be a systematic prescriptive ethics. In other words, recent events in the world of economics have provided an opening for what ethical philosophy should be best at providing. Determining whether a specific ethical philosophy, to be identified shortly, has the capacity to address the questions raised by heterodox economics is the task of this paper.

Are Busy Directors Harmful or Helpful? Evidence from the Great Recession

2018 ◽  
Vol 18 (2) ◽  
Author(s):  
Pradit Withisuphakorn ◽  
Pornsit Jiraporn
Keyword(s):  
Standard Deviation ◽  
Financial Crisis ◽  
Great Recession ◽  
Firm Value ◽  
Costs And Benefits ◽  
Governance Mechanisms ◽  
Great Caution ◽  
Crisis Period ◽  
The Great Recession

Abstract We contribute to the debate on the costs and benefits of busy directors by investigating the effect of busy directors on firm value during a stressful time, i. e. during the Great Recession. Our results show that busy directors improve firm value significantly during the financial crisis. In particular, a rise in directors’ busyness by one standard deviation results in an improvement in Tobin’s q by 6.41 %. Directors with multiple board seats appear to help firms navigate the crisis more successfully, supporting the notion that multiple board seats signal higher quality. Outside the crisis period, however, we find that busy directors reduce firm value, consistent with many prior studies. Our results are crucial as they show that governance mechanisms function differently during stressful times than they do during normal times. Firms should exercise great caution before imposing limits on outside board seats on their directors.

scholarly journals Financial shocks and inflation dynamics

2021 ◽  
pp. 1-29
Author(s):  
Angela Abbate ◽  
Sandra Eickmeier ◽  
Esteban Prieto
Keyword(s):  
Financial Crisis ◽  
Great Recession ◽  
Policy Implication ◽  
Vector Autoregressive Model ◽  
Financial Shocks ◽  
Trade Off ◽  
Vector Autoregressive ◽  
The Great Recession ◽  
Short Run ◽  
Dual Mandate

Abstract We assess the effects of financial shocks on inflation, and to what extent financial shocks can account for the “missing disinflation” during the Great Recession. We apply a Bayesian vector autoregressive model to US data and identify financial shocks through a combination of narrative and short-run sign restrictions. Our main finding is that contractionary financial shocks temporarily increase inflation. This result withstands a large battery of robustness checks. Negative financial shocks help therefore to explain why inflation did not drop more sharply in the aftermath of the financial crisis. Our analysis suggests that higher borrowing costs after negative financial shocks can account for the modest decrease in inflation after the financial crisis. A policy implication is that financial shocks act as supply-type shocks, moving output and inflation in opposite directions, thereby worsening the trade-off for a central bank with a dual mandate.

Conclusion

2020 ◽  
pp. 258-274
Author(s):  
Elizabeth Hewitt
Keyword(s):  
Economic Crisis ◽  
Great Recession ◽  
First Century ◽  
National Commission ◽  
Narrative Form ◽  
Simple Explanation ◽  
Global Finance ◽  
Wall Street ◽  
The Great Recession ◽  
Hollywood Films

This chapter turns to the twenty-first century to study the implications of narrative form to the representation of contemporary fiscal catastrophe. It argues that the legacy of the narrative dispute between the Hamiltonians and Jeffersonians can be seen in contemporary explanations of the Great Recession, including the 2011 report generated by the National Commission on the Causes of the Financial and Economic Crisis and two Hollywood films, The Wolf of Wall Street and The Big Short. All three texts are shaped by both the imperative to represent the complexity of global finance and the impulse to offer a simple explanation.

The ongoing aftermath to the financial crisis and the Great Recession

2019 ◽  
Vol 34 (5) ◽  
pp. 560-570
Author(s):  
Gerardo del Cerro Santamaría
Keyword(s):  
Financial Crisis ◽  
Great Recession ◽  
Liberal Democracy ◽  
The United States ◽  
Historical Period ◽  
Current Crisis ◽  
The West ◽  
The Great Recession ◽  
Contemporary World ◽  
The World

This article discusses the consequences of the financial crisis that started in 2008 in the West, and particularly in the United States, as a manifestation of neoliberal capitalism’s multiple failures. In doing so, it focuses on the scholarly contributions of Manuel Castells and his colleagues in two important books: Aftermath: The Cultures of the Economic Crisis (2012) and Another Economy is Possible (2017). Both books are collective works led and edited by Castells. Also included in the review is a third book by Castells, Rupture: The Crisis of Liberal Democracy (2018), which can be read as a statement on some of the political consequences of the 2008 financial crisis and a report on the current crisis of liberal democracy. The contention is that Castells et al. make an important contribution to the socio-economic literature on the financial crisis, its consequences, and the interpretation of the societal changes that ensued and are key to understand our contemporary world. Such contribution, as observed in the three books under review, can be summarized as follows: (1) Castells and colleagues provide cases and examples from around the world in a broad comparative fashion, thus expanding our understanding of a crisis that was essentially a crisis of the West with ramifications in other countries but never a truly global crisis. (2) The approach of Castells and his colleagues is interdisciplinary and goes beyond purely economic arguments to include sociological, political and cultural ideas and insights that help us understand the complexity of the historical period under analysis; readers develop an awareness of the systemic character of the crisis, where all events were closely interrelated; in particular, both micro and macro processes leading to the crisis converged into a mutually dialectical and reinforcing relationship that warrants the contention by the authors that ‘economies’ are ‘cultures.’ (3) The authors in both Aftermath and Another Economy is Possible focus on the (long) aftermath of the crisis, which is still ongoing as of September 2019 around the world; in fact, one of Castells’ main points is that the financial crisis brought about irreversible societal change, ongoing and clearly visible today, as it triggered a significant restructuring of global informational capitalism. (4) The authors provide a focus on one of the reactive consequences of the crisis: alternative economic practices developing in the aftermath of the crisis, under the premise that we might be witnessing the rise of a new economic model based on new, alternative values. (5) Castells provides a discussion (in Rupture) of aspects of the contemporary political landscape a decade after the outset of the financial crisis and the Great Recession.

scholarly journals Recovering from The Great Recession: A Comparative Analysis of the Nature and Effectiveness of Global Reactionary Policy to the 2008 Financial Crisis

2016 ◽  
Vol 1 (2) ◽  
pp. 87-90
Author(s):  
Evan Truscott
Keyword(s):  
Financial Crisis ◽  
Great Recession ◽  
Large Scale ◽  
Economic Recession ◽  
Time Frame ◽  
Small Time ◽  
Global Trends ◽  
The Great Recession ◽  
Effective Policy ◽  
The 2008 Financial Crisis

The 2008 'subprime' financial crisis caused intense economic recession and instability on an international scale, creating the need for immediate reactionary and interventionist policy from most governments. With a wealth of large-scale dedicated studies to this specific topic emerging in recent years, we have a unique opportunity to synthesize these findings in a way that could indicate potential effective policy actions. This paper intends to identify, categorize and compare an array of policies enacted by utilizing a specific cross section of nations similar in political culture (Australia, New Zealand, and Canada), in an attempt to broadly asses and isolate global trends of reactionary policy-making and the effectiveness of these policies, in nations of comparable institutions, over a relatively small time frame.

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