The subprime crisis and its consequences

Josef Ackermann

Journal of Financial Stability, 2008, vol. 4, issue 4, 329-337

Abstract: Having started by describing the background to the crisis, the paper considers priorities for action by the financial industry, being: (1) improved transparency; (2) review valuation issues, notably the distinctions between IFRS and US GAAP on asset reclassification; (3) better risk management, with an appropriate mix of quantitative and qualitative metrics; (4) Improved market infrastructure, perhaps including a central counterparty for OTC derivatives; (5) an external review of ratings agencies' processes; (6) enhanced liquidity risk management. An assessment of the measures taken by central banks to allay the crisis follows, and we conclude with an analysis of the strategic consequences for the financial industry.

Keywords: Transparency; Risk; management; Liquidity; Valuation; of; complex; financial; products; Original; and; distribute; model (search for similar items in EconPapers)
Date: 2008
References: Add references at CitEc
Citations: View citations in EconPapers (26)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1572-3089(08)00052-1
Full text for ScienceDirect subscribers only

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:eee:finsta:v:4:y:2008:i:4:p:329-337

Access Statistics for this article

Journal of Financial Stability is currently edited by I. Hasan, W. C. Hunter and G. G. Kaufman

More articles in Journal of Financial Stability from Elsevier
Bibliographic data for series maintained by Catherine Liu ().