Past Event

The bankers’ new clothes

What is wrong with today’s banking system? The past few years have shown that risks in banking can impose significant costs on the economy. Many claim, however, that a safer banking system would require sacrificing lending and economic growth. The bankers’ new clothes examines this claim and the narratives used by bankers, politicians, and regulators […]

Date: May 15, 2013, 11:45 am

What is wrong with today’s banking system? The past few years have shown that risks in banking can impose significant costs on the economy. Many claim, however, that a safer banking system would require sacrificing lending and economic growth. The bankers’ new clothes examines this claim and the narratives used by bankers, politicians, and regulators to rationalize the lack of reform, exposing them as invalid.

The book argues that we can have a safer and healthier banking system without sacrificing any of the benefits of the system, and at essentially no cost to society. Banks are as fragile as they are not because they must be, but because they want to be–and they get away with it. Whereas this situation benefits bankers, it distorts the economy and exposes the public to unnecessary risks.

Weak regulation and ineffective enforcement allowed the buildup of risks that ushered in the financial crisis of 2007-2009. Much can be done to create a better system and prevent crises. Yet the lessons from the recent crisis have not been learned.

Speakers

  • Anat Admati, George G.C. Parker Professor of Finance and Economics at the Graduate School of Business, Stanford University. She serves on the FDIC Systemic Resolution Advisory Committee and has contributed to the Financial Times, Bloomberg News, and the New York Times.
  • Martin Hellwig, Director, Max Planck Institute for Research on Collective Goods. He was the first chair of the Advisory Scientific Committee of the European Systemic Risk Board and the cowinner of the 2012 Max Planck Research Award for his work on financial regulation.
  • Discussant – Nadia Calviño, Deputy Director General for Financial services policy, DG MARKT, European Commission
  • Discussant – Thomas Leysen, Chairman of the Board of Directors, KBC Group
  • Chair – André Sapir, Senior Fellow, Bruegel and Professor at ULB

Event materials

  • Event summary here
  • Authors’ presentation here

Practical details

  • Venue: Bruegel, Rue de la Charité 33, 1210 Bruxelles
  • Time: 15 May 2013, 12:45 – 14:30 (A light lunch will be served before the event starts at 13:00)
  • Contact: matilda.sevon[at]bruegel.org

Photos

Topics

Read article More on this topic More by this author

Blog Post

Silvia Merler

Italy's Atlas bank bailout fund: the shareholder of last resort

Italy’s new bank fund Atlas might be what is needed in the short run, but in the longer term the fund will increase systemic risk. What ultimately matters is how this initiative will affect the quality of bank governance, a key issue for the future resilience of the system.

By: Silvia Merler Topic: Finance & Financial Regulation Date: April 22, 2016
Read about event More on this topic

Upcoming Event

9 
Jun
2016
13:00

The Spanish financial crisis: Lessons for the European banking union

Spain is among the countries still recovering from the financial crisis. While misjudged investments were part of the cause, these past mistakes could offer lessons for the European banking union.

Speakers: Miguel Otero-Iglesias and Federico Steinberg Topic: Finance & Financial Regulation Location: Bruegel, Rue de la Charité 33, 1210 Brussels
Read article More on this topic

Blog Post

Pia Hüttl
Alvaro Leandro

The implications of the Panama Papers

What’s at stake: The Panama Papers leaked last week raised important questions about the role of tax havens. We explain the mechanics of tax evasion and review the most important lessons to take away from the leaks.

By: Pia Hüttl and Alvaro Leandro Topic: Finance & Financial Regulation Date: April 18, 2016
Read article More by this author

Opinion

Guntram B. Wolff

The G20’s structural reform agenda should address income gap and financial system fragility

G20 leaders must address major issues like the distribution of income and the structure of our financial systems in order to combat the deeper underlying causes of weak global demand.

By: Guntram B. Wolff Topic: Finance & Financial Regulation, Global Economics & Governance Date: March 15, 2016
Read article More on this topic

Blog Post

Pia Hüttl
Silvia Merler

Brexit endangers London’s status as a financial hub

The UK’s competitive edge in financial services is substantial and would be difficult to dislodge. But Brexit could damage London’s attractiveness as the centre of European banking, as an entry point to the EU and as a global financial hub. FDI is also at risk.

By: Pia Hüttl and Silvia Merler Topic: Finance & Financial Regulation Date: March 10, 2016
Read article More on this topic More by this author

Blog Post

Nicolas Véron

Market turbulence highlights bumpy transition to Europe’s new bank policy regime

Concerns about Europe’s banks contributed to turmoil in global financial markets in February, but Europe’s new banking sector policy regime should gradually help reduce uncertainty.

By: Nicolas Véron Topic: Finance & Financial Regulation Date: March 8, 2016
Read article Download PDF

Policy Contribution

The United States dominates global investment banking: does it matter for Europe?

The United States dominates global investment banking: does it matter for Europe?

Europe’s banks are in retreat from playing a global investment banking role, and this trend is likely to continue in the future. What will be the consequences and what should be the policy response?

By: Charles Goodhart and Dirk Schoenmaker Topic: Finance & Financial Regulation, Global Economics & Governance Date: March 7, 2016
Read about event More on this topic

Past Event

Past Event

Stock taking of the ongoing bank crisis resolution in Europe

What progress is being made on an optimal system of bank resolution following the disasters of the financial crisis?

Speakers: Ignazio Angeloni, Hans Jörg Schelling, Emiliano Tornese, Andreas Treichl, Nicolas Véron and Harald Waiglein Topic: Finance & Financial Regulation Location: Federal Ministry of Finance, Johannesgasse 5, 1010, Vienna Date: February 25, 2016
Read about event More on this topic

Past Event

Past Event

How to improve national insolvency regimes

How can we reduce divergencies in national corporate insolvency regimes in order to create an integrated Capital Markets Union?

Speakers: Paul McGhee, Nicolas Véron and Sebastian Mock Topic: Finance & Financial Regulation Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: February 23, 2016
Read article More on this topic More by this author

Blog Post

Nicolas Véron

European Deposit Insurance: a response to Ludger Schuknecht

Nicolas Véron argues that there are two major oversights in Dr Schuknecht’s anti-European Deposit Insurance outburst, respectively about deposit insurance and about banking union.

By: Nicolas Véron Topic: Finance & Financial Regulation Date: February 16, 2016
Read article More on this topic More by this author

Opinion

Ashoka Mody

The market's troubling message

Amid one of the worst market routs on record, a chorus of reassuring economic commentators insists that global fundamentals are sound and investors are overreacting, behaving like a panicked herd. Don’t be so sure.

By: Ashoka Mody Topic: Finance & Financial Regulation Date: January 30, 2016
Read about event More on this topic

Past Event

Past Event

Impact of regulatory and supervisory reform on the banking sector

In the framework of our 10th anniversary celebrations, Bruegel is organising a series of events in the capitals of our member states. These debates, talks and conferences will bring crucial European topics to audiences across the continent. One year after a major overhaul of European banking regulation and supervision, the National Bank of Belgium and […]

Speakers: Luc Coene, Mathias Dewatripont, Olivier Hamoir, Dominique Laboureix, Dirk Schoenmaker, Johan Thijs, Erik van der Plaats, Guntram B. Wolff and Diederik van Wassenaer Topic: Finance & Financial Regulation Location: Rue Montagne aux Herbes potagères 61, Brussels Date: January 28, 2016
Load more posts