Governance of Global Financial Markets
The Law, the Economics, the Politics

Analyses governance structures for international finance, evaluates current regulatory reforms and proposes a new governance system for global financial markets.

Emilios Avgouleas (Author)

9780521762663, Cambridge University Press

Hardback, published 26 April 2012

500 pages, 4 b/w illus.
22.9 x 15.2 x 2.7 cm, 0.83 kg

'This timely, comprehensive study of the use and abuse of global financial governance argues that financial innovation, i.e. the 'knowledge revolution' which shaped financial markets in tandem with liberalisation policies and technological developments, has been insufficiently understood and badly mismanaged. … As the author mentions in his Preface, reform is taking place 'at rapid pace and at all levels', which makes it hard to keep up with. The book represents a giant effort to do so. It is 'too rich to review' in a few pages, and deserves to be read with care. Importantly, it provokes debate, which is perhaps one of its finest features.' Marleen Wessel, Law and Financial Markets Review

The recent financial crisis proved that pre-existing arrangements for the governance of global markets were flawed. With reform underway in the USA, the EU and elsewhere, Emilios Avgouleas explores some of the questions associated with building an effective governance system and analyses the evolution of existing structures. By critiquing the soft law structures dominating international financial regulation and examining the roles of financial innovation and the neo-liberal policies in the expansion of global financial markets, he offers a new epistemological reading of the causes of the global financial crisis. Requisite reforms leave serious gaps in cross-border supervision, in the resolution of global financial institutions and in the monitoring of risk originating in the shadow banking sector. To close these gaps and safeguard the stability of the international financial system, an evolutionary governance system is proposed that will also enhance the welfare role of global financial markets.

1. Introduction
Part I. Financial Markets and Financial Crises: 2. Financial markets and financial crises
3. The causes of the global financial crisis
Part II. The Evolution of Global Governance Structures: 4. The evolution of global financial governance and development of international financial regulation
5. The 'softness' of soft law and global financial governance
Part III. Regulatory Reform and a New Governance Model for Global Financial Markets: 6. Regulatory and supervisory reform: US, EU, Basel Committee
7. Global reform of the 'too-big-to-fail-institution' and the new resolution regimes in the US and the EU
8. An evolutionary model for global financial governance.

Subject Areas: Company law [LNCD], Law [L], Finance & accounting [KF]