Table of Contents

List of figures; List of tables; Acknowledgements; Why you - yes, you! - should read this book; 1. Introduction; 2. Financial crises in the United States and Europe but not in Asia; Appendix 2.1. A chronological presentation of events January 2007–December 2010; 3. Could today's financial crisis have been foreseen? Some theory and some facts; 4. The American housing market and the subprime crisis; 5. Securitization and derivatives spread the crisis around the world; Appendix 5.1. Inherent conflicts of interest in subprime securitization; Appendix 5.2. Write-downs in individual banks, investment banks and insurance companies, 2007–9; 6. Liquidity risk aspects of the crisis and a comparison with 1907 and 1929; Appendix 6.1. The liquidity-risk framework proposed by the FSA and the BIS; 7. Credit risk aspects of the crisis, rating and solvency; Appendix 7.1. Government support activities for banks' capital ratios 2007–9; Appendix 7.2. The proposed new capital requirements under 'Basel III'; 8. Financial crises in modern history: similarities and differences; 9. Worldwide changes in regulation and supervision as a result of the crisis; Appendix 9.1. List of regulatory authorities in the United States; Outstanding issues; References; Index.