A tale of two crises: Germany’s Landesbanken and the United States’ savings and loans

Mark K Cassell

Journal of Banking Regulation, 2016, vol. 17, issue 1-2, 73-89

Abstract: This research compares the experiences of financial institutions in two very different financial crises: savings and loan institutions (S&Ls) in the United States during the 1980s and Germany’s state-owned banks, known as Landesbanken, during the global recession of 2007–2008. While much of the research on bank failures centers on the choices made by public and private actors according to their interests, this research focuses on the relationship between the ideas that drive an economic entity and the institutions that hold the economic entity accountable. The article argues that while the crises were very different, there is a causal thread that connects the two. Landesbanken and the S&Ls experienced a similar disruption in the complementarity between their original mission and their regulatory framework. The disruption contributed to increased volatility, weak oversight, and greater dependence on third parties and bank managers for risk information.

Date: 2016
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.palgrave-journals.com/jbr/journal/v17/n1-2/pdf/jbr201511a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/jbr/journal/v17/n1-2/full/jbr201511a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:jbkreg:v:17:y:2016:i:1-2:p:73-89

Ordering information: This journal article can be ordered from
http://www.springer.com/finance/journal/41261/PS2

Access Statistics for this article

Journal of Banking Regulation is currently edited by Dalvinder Singh

More articles in Journal of Banking Regulation from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().