The Transatlantic Banking Crisis: Lessons and EU Reforms

The key dynamics of the transatlantic banking crisis are analyzed – with emphasis on the fact that the banking disaster of 2007/08 was not really a surprise –, and the five key requirements for restoring stability and efficiency in the EU/OECD banking sector are highlighted. Most important, however, is the introduction of a new tax regime designed to encourage bankers to take a more long term time horizon in decision-making and to reduce excessive risk-taking. Banks and funds should be taxed not only on the basis of profits but also on the basis of the variability – read variance – of the rate of return on equity: the higher the variability over time the higher the tax to be paid. The quality and comprehensiveness of banks’ balance sheets must be radically improved and all off-balance sheet activities must be included in future total balance sheets. The medium term structure of employment in terms of the breakdown nontradables/tradables will have to adjust.banking, financial market reforms, EU, globalization, USA

Reform der Bankenaufsicht: Ein internationales Politikthema

Nachdem die Immobilienkrise in den USA auch Deutschland erreicht und die IKB Deutsche Industriebank AG sowie die sächsische Landesbank Sachsen LB in Schwierigkeiten gebracht hat, werden Forderungen laut, die Banken stärker zu regulieren. Was sind die Ursachen für die Schwierigkeiten der deutschen Banken? Hat die Bankenaufsicht Fehler gemacht? Sollte sie reformiert werden? Ist eine Vereinheitlichung der Bankenaufsicht auf der EU-Ebene erforderlich? --