國立虎尾科技大學 |

The Construction of Financial Authority.

Record Type:	Language materials, manuscript : Monograph/item
Title/Author:	The Construction of Financial Authority./
Author:	Lockwood, Erin.
Description:	1 online resource (320 pages)
Notes:	Source: Dissertation Abstracts International, Volume: 79-02(E), Section: A.
Contained By:	Dissertation Abstracts International79-02A(E).
Subject:	International relations. -
Online resource:	click for full text (PQDT)
ISBN:	9780355297775

The Construction of Financial Authority.
Lockwood, Erin.

The Construction of Financial Authority. - 1 online resource (320 pages)

Source: Dissertation Abstracts International, Volume: 79-02(E), Section: A.

Thesis (Ph.D.)

Includes bibliographical references

This dissertation examines the construction and regulation of over-the-counter derivatives markets before and after the 2007-2009 global financial crisis. It addresses two questions: How did the market for derivatives traded outside traditional exchanges grow so large and crisis-prone with so little public regulation? And, why, given derivatives' contribution to the 2008 financial crisis, were post-crisis regulatory reforms so limited? I argue that the answer lies in the authority of financial market actors and in public regulators' perception of them as competent managers of risk, based on a set of practices that assured regulators that banks were valuing assets consistently, allowing the price mechanism to function, and guarding against default. I find that particular market practices, including risk models and standardized accounting methods, made regulators overly confident in the benefits of derivatives and the abilities of market actors to prevent crises. However, because of pervasive uncertainty, opacity, and complexity in the market that financial actors constructed through these practices, many of the practices failed to predict and prevent systemic contagion during the 2007-2009 financial crisis. Indeed, the widespread use of some of these practices produced correlation in trading strategies that made the market less predictable and more vulnerable to crisis. Nonetheless, because these practices were so deeply entrenched in the operation of the market, the space for post-crisis regulatory change was and remains highly constrained. Because these practices are constitutive of the market, fundamentally altering them would jeopardize the existence of a market that regulators still perceive as providing a valuable social function by distributing risk. My conclusions are based on an interpretive analysis of an original body of primary source regulatory and industry speeches, testimony, and reports.

Electronic reproduction.
Ann Arbor, Mich. :
ProQuest,
2018

Mode of access: World Wide Web

ISBN: 9780355297775Subjects--Topical Terms:

554886
International relations.
Index Terms--Genre/Form:

554714
Electronic books.

The Construction of Financial Authority.
LDR:03224ntm a2200361Ki 4500 001 909888
005 20180426091049.5
006 m o u
007 cr mn||||a|a||
008 190606s2017 xx obm 000 0 eng d
020 $a 9780355297775
035 $a (MiAaPQ)AAI10617646
035 $a (MiAaPQ)northwestern:13844
035 $a AAI10617646
040 $a MiAaPQ $b eng $c MiAaPQ
099 $a TUL $f hyy $c available through World Wide Web
100 1 $a Lockwood, Erin. $3 1180889
245 1 4 $a The Construction of Financial Authority.
264 0 $c 2017
300 $a 1 online resource (320 pages)
336 $a text $b txt $2 rdacontent
337 $a computer $b c $2 rdamedia
338 $a online resource $b cr $2 rdacarrier
500 $a Source: Dissertation Abstracts International, Volume: 79-02(E), Section: A.
500 $a Advisers: Stephen C. Nelson; Ian Hurd.
502 $a Thesis (Ph.D.) $c Northwestern University $d 2017.
504 $a Includes bibliographical references
520 $a This dissertation examines the construction and regulation of over-the-counter derivatives markets before and after the 2007-2009 global financial crisis. It addresses two questions: How did the market for derivatives traded outside traditional exchanges grow so large and crisis-prone with so little public regulation? And, why, given derivatives' contribution to the 2008 financial crisis, were post-crisis regulatory reforms so limited? I argue that the answer lies in the authority of financial market actors and in public regulators' perception of them as competent managers of risk, based on a set of practices that assured regulators that banks were valuing assets consistently, allowing the price mechanism to function, and guarding against default. I find that particular market practices, including risk models and standardized accounting methods, made regulators overly confident in the benefits of derivatives and the abilities of market actors to prevent crises. However, because of pervasive uncertainty, opacity, and complexity in the market that financial actors constructed through these practices, many of the practices failed to predict and prevent systemic contagion during the 2007-2009 financial crisis. Indeed, the widespread use of some of these practices produced correlation in trading strategies that made the market less predictable and more vulnerable to crisis. Nonetheless, because these practices were so deeply entrenched in the operation of the market, the space for post-crisis regulatory change was and remains highly constrained. Because these practices are constitutive of the market, fundamentally altering them would jeopardize the existence of a market that regulators still perceive as providing a valuable social function by distributing risk. My conclusions are based on an interpretive analysis of an original body of primary source regulatory and industry speeches, testimony, and reports.
533 $a Electronic reproduction. $b Ann Arbor, Mich. : $c ProQuest, $d 2018
538 $a Mode of access: World Wide Web
650 4 $a International relations. $3 554886
650 4 $a Political science. $3 558774
650 4 $a Finance. $3 559073
655 7 $a Electronic books. $2 local $3 554714
690 $a 0601
690 $a 0615
690 $a 0508
710 2 $a ProQuest Information and Learning Co. $3 1178819
710 2 $a Northwestern University. $b Political Science. $3 1180890
773 0 $t Dissertation Abstracts International $g 79-02A(E).
856 4 0 $u http://pqdd.sinica.edu.tw/twdaoapp/servlet/advanced?query=10617646 $z click for full text (PQDT)