August 6, 2015 DRAFT

Global Financial Crises and Institutions George Mason University School of Policy, Government, and International Affairs

Fall 2015

Adjunct Professor Debra L. Miller debramillernh@gmail.com 603-991-0375 (mobile) Six years after the 2007-2009 global financial crisis shook the global economy, the Bank for International Settlements (BIS) reports that “economic expansion is unbalanced, debt burdens and financial risks are still too high, productivity growth too low, and the room for manoeuvre in macroeconomic policy too limited. The unthinkable risks becoming routine and being perceived as the new normal.” In the United States, participation in the workforce fell to 62.6% last June, the lowest rate since 1977; the debt of the federal government, assumed to rescue a banking system that was near collapse in 2007, remains high; and a record level of income inequality made more apparent after the crisis inflames political debate. In the European Union, repayment of Greek sovereign debt has been a recurring issue since 2010 and Eurozone members feared—and some rather hoped for—a Greek exit from the monetary union last summer. Taken as a whole, the European Union is only inching out of the recession brought about by the 2007-2009 global financial crisis and Italy, Portugal, and Spain face sovereign debt burdens, too. Financial crises are important phenomena to study. We know their consequences can be horrific. Many of us were affected by the 2007-2009 crisis in some way. But, economists, bankers, and policy-makers have done a notoriously poor job in predicting when and why crises will occur. More than that, addressing a crisis is difficult. When a crisis occurs, what should policy-makers do? Who will gain and who will lose and at what cost? How do the finance sector, national governments, central banks, and international organizations (international financial institutions (IFIs) like the International Monetary Fund) interact and shape events? We address these questions this way:

Examine what banks do and the risks they face, take, and try to manage; and the role of the financial sector in the economy.

Learn about several financial crises and use them as case-studies for public policy issues they raise.

Explore the evolution of international organization for global financial issues with a particular focus on the role of international financial institutions (IFIs) such as the International Monetary Fund (IMF), the World Bank, and the Asian Infrastructure Investment Bank and regional financial arrangements such as the European Central Bank and the European Stability Mechanism.

Learning Outcomes Knowledge and understanding. Students will gain knowledge and understanding about

The role of banks in the global economy and the risks bank face, take, and attempt to manage Causes of financial crises and especially the 2007-2009 global financial crisis Regulation of the financial sector in the United States; financial policy integration in the European Union The missions, impact, decision-making processes, policies, and organizational structures of international financial institutions such as the International Monetary Fund, the World Bank, and European Union institutions

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Analytical skills and abilities and professional development. This course is oriented toward helping you achieve these competencies:

Leading and managing public governance Participating in and contributing to the policy process Analyzing, synthesizing, thinking critically, solving problems and making decisions Articulating and applying a public service perspective Communicating and interacting productively with a diverse and changing workforce and citizenry

Course requirements and grading This course requires that you read, think, speak, and write about public policy. Your final grade is based upon:

participation in class discussions and exercises, 15%

one take-home midterm exam (six pages, double-spaced, electronic submissions only, due October 16), 35%,

a take-home open book final essay exam (length and due date to be specified, approximately 10 days to complete, electronic submissions only), 50%

Books to Purchase or Rent It may be practical to rent or buy the following books: Carmen Reinhart and Kenneth Rogoff, This Time is Different: Eight Hundred Years of Financial Folly, (Princeton: 2009) Michael Lewis, The Big Short: Inside the Doomsday Machine Sheila Bair, Bull by the Horns: Fighting to Save Main Street from Wall Street and Wall Street from Itself (Free Press: 2012) Anat Admati and Martin Hellwig, The Bankers’ New Clothes: What’s Wrong with Banking and What to Do about It (Princeton University Press: 2013) Anthony Saunders and Marcia Millon Cornett, Financial Institutions Management: A Risk Management

Approach, 8/e (McGraw Hill: 2013)

COURSE OUTLINE AND READINGS Please read assigned materials before meeting. Those materials designated as “For further exploration” are recommended, not required. August 31 Globalization and International Financial Institutions “Is globalisation great?” a 6 page speech by Stephen Cecchetti, Economic Adviser at the Bank for International Settlements (BIS), and Head of its Monetary and Economic Department Remarks prepared for the 11th BIS Annual Conference Lucerne, Switzerland, 21–22 June 2012 http://www.bis.org/speeches/sp120625.pdf Remarks on the future of global financial regulation by David Wright, Secretary General of the International Organization of Securities Commissions (IOSCO), at the Atlantic Council, Washington D.C., December 10, 2012, http://www.iosco.org/library/speeches/pdf/20121210-Wright-David.pdf

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Annie Lowrey, "For Two Economists, the Buffett Rule is Just a Start," The New York Times, April 16, 2012. Go to http://www.nytimes.com/2012/04/17/business/for-economists-saez-and-piketty-the-buffett-rule-is-just-a-start.html “Income Earned by the Wealthiest” in The New York Times, April 16, 2012 http://www.nytimes.com/interactive/2012/04/17/business/income-earned-by-the-wealthiest.html Council on Foreign Relations, International Institutions and Global Governance Program, “Global Governance Monitor: Global Finance” https://secure.www.cfr.org/publication/18985/global_governance_monitor.html?co=C028803#/Finance/Overview%20Video/ For further exploration:

Nikola Spatafora, “The Impact of the Boom in Global Finance on Developing Countries” in World Bank Global Economic Prospects 2010: Crisis, Finance, and Growth http://siteresources.worldbank.org/INTGEP2010/Resources/Chapter-2.pdf Paul Krugman and Robin Wells, “The Widening Gyre: Inequality, Polarization, and the Crisis,” in The Occupy Handbook, Janet Byrne, ed. (Back Bay Books: 2012)

September 7 LABOR DAY, NO CLASS, UNIVERSITY CLOSED September 14 and 21 Banks, Risk, and Risk Management Anat Admati and Martin Hellwig, The Bankers’ New Clothes: What’s Wrong with Banking and What to Do about It, pp. ix-xiii, 1-78 (Princeton University Press: 2013) Adam Davidson,“Why Greece’s Lenders Need to Suffer,” New York Times Magazine, July 28, 2015 http://www.nytimes.com/2015/08/02/magazine/why-greeces-lenders-need-to-suffer.html Anthony Saunders and Marcia Millon Cornett, Financial Institutions Management: A Risk Management Approach, 8th Edition (McGraw-Hill Irwin, 2013) [chapters to be assigned] Anthony Saunders and Marcia Millon Cornett, Financial Markets and Institutions, 6th edition, (McGraw-Hill International Edition: 2015) [chapters to be assigned] Sheila Bair, Bull by the Horns: Fighting to Save Main Street from Wall Street and Wall Street from Itself, pp. 27-58 Ch. 3, “The Fight Over Basel II,” Ch. 4, “The Skunk at the Garden Party,” Ch. 5, “Subprime is Contained, ” and Ch. 26, “How Main Street can Tame Wall Street,” pp. 323-353 September 28 and October 5 The Financial Crisis of 2007-2009

Carmen Reinhart and Kenneth Rogoff, This Time is Different: Eight Hundred Years of Financial Folly, (Princeton: 2009). Read the “Preface” and the ”Preamble: Some initial Intuitions on Financial Fragility and the Fickle Nature of Confidence.” (on e-reserve)

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Michael Lewis, The Big Short: Inside the Doomsday Machine Financial Crisis Inquiry Commission, “Forum to Explore the Causes of the Financial Crisis” February 26-27, 2010 Go to “Day 1” and “Day 2” at http://fcic.law.stanford.edu/hearings/testimony/forum-to-explore-the-causes-of-the-financial-crisis to find the testimonies and videos listed below. Choose one of the following subjects and read the associated papers and “follow-up questions” and watch the associated videos.

Pierre-Olivier Gourinchas, Macroeconomic Factors and U.S. Monetary Policy (plus Maurice Obstfeld and Kenneth Rogoff, “Global Imbalances and the Financial Crisis: Products of Common Causes,” http://www.economics.harvard.edu/faculty/rogoff/files/Global_Imbalances_and_Financial_Crisis.pdf

John Geanakoplos, Risk Taking and Leverage plus Anat Admati The New York Times video, August 19, 2014, http://www.nytimes.com/video/business/100000003063075/admati-takes-on-too-big-to-fail.html

Annamaria Lusardi, Household Finances and Financial Literacy plus Caroline Ratcliffe and Signe-Mary McKernan, The Urban Institute, “Who Has Student Loans and Who is Worried?” June 2013, http://www.usfinancialcapability.org/downloads/412849-Forever-in-Your-Debt-Who-Has-Student-Loan-Debt-and-Whos-Worried.pdf

Chris Mayer, Mortgage Lending Practices and Securitization See also this follow-up: Ben Protess, “Judge Rakoff Says 2011 S.E.C. Deal With Citigroup Can Close” The New York Times, August 5, 2014, http://dealbook.nytimes.com/2014/08/05/after-long-fight-judge-rakoff-reluctantly-approves-citigroup-deal/?_php=true&_type=blogs&_r=0

Dwight Jaffee, Government-Sponsored Enterprises and Housing Policy plus Gretchen Morgenson and Joshua Rosner, Reckless Endangerment: How Outsized Ambition, Greed, and Corruption Led to Economic Armageddon, New York: 2011

Markus Brunnermeier, Derivatives and Other Complex Financial Instruments Anil Kashyap, Firm Structure and Risk Management

plus “Swallowed by the London Whale: The rise and fall of Ina Drew at JP Morgan Chase,” by Susan Domius, October 7, 2012 http://www.nytimes.com/2012/10/07/magazine/ina-drew-jamie-dimon-jpmorgan-chase.html?ref=magazine&_r=0

Gary Gorton, Shadow Banking plus “Shadow banking – thoughts for a possible policy agenda,”a 6-page speech Paul Tucker, Deputy Governor for Financial Stability at the Bank of England, at the European Commission High Level Conference, Brussels, 27 April 2012.

http://www.bis.org/review/r120427a.pdf?frames=0 Too Big to Fail (TBTF)

Simon Johnson and James Kwak, Thirteen Bankers, pp. 200-222 Saunders and Cornett, Financial Institutions Management, 8th edition, chapter on

“Product and Geographic Expansion,” pp. 656-691, on e-reserve)

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Peter Eavis, “Big Banks and Treasury See Positive Signs in Report on Financial Industry” The New York Times, July 31, 2014 (article and video with Senator Brown and Senator Vitter) http://dealbook.nytimes.com/2014/07/31/both-sides-see-positive-signs-in-report-on-financial-industry/?module=Search&mabReward=relbias%3Ar%2C%7B%221%22%3A%22RI%3A6%22%7D

The Editorial Board of The New York Times, “Too Big to Regulate” The New York Times, August 9, 2014, http://www.nytimes.com/2014/08/10/opinion/sunday/too-big-to-regulate.html?module=Search&mabReward=relbias%3Ar%2C%7B%221%22%3A%22RI%3A6%22%7D

Monday, October 12 is Columbus Day Recess. We will meet on Tuesday, October 13 instead. Classes regularly scheduled for Tuesday do not meet this week. October 13 (Tuesday) Post-crisis policy and regulation Policy and Regulation Viral V. Acharya, Thomas F. Cooley, Matthew Rp. Richardson, and Ingo Walters, eds., Regulating Wall Street: The Dodd-Frank Act and the New Architecture of Global Finance, (NYU Stern, Wiley, New York: 2011), “Prologue: A Bird’s-Eye View: The Dodd-Frank Wall Street Reform and Consumer Protection Act,”, pp. 1-30 (on e-reserve) Hon. Jacob J. Lew, Secretary, U.S. Treasury, broad policy address at The Pew Charitable Trusts on Thursday, Dec. 5, 2013, on new financial protections recently put in place to address the causes of the financial crisis and what still must be done to protect the nation’s economy. Listen to the video at http://www.pewtrusts.org/events_detail.aspx?id=85899523657#sthash.WZOG3nbN.dpuf Hon. Jacob J. Lew, Secretary, U.S. Treasury, “Dodd-Frank at Five Years,” http://www.brookings.edu/events/2015/07/08-jack-lew-treasury-dodd-frank-at-five-years The Impact of the Dodd-Frank Act on Financial Stability and Economic Growth Martin Neil Baily (Brookings) and Aaron David Klein (Bipartisan Policy Center), presentation to the University of Michigan Conference, October 24, 2014 http://www.brookings.edu/~/media/Research/Files/Presentations/2014/10/27-martin-bailey-dodd-frank/Baily-Klein-PPTF.pdf?la=en For further exploration:

“Understanding the Volcker Rule,” http://thedianerehmshow.org/shows/2013-12-11/understanding-volcker-rule , December 11, 2013. With Michael Greenberger , Professor, University of Maryland Carey School of Law; former Governor Tim Pawlenty, CEO, Financial Services Roundtable; Jim Zarroli, business reporter, NPR; and Janet Hook, congressional correspondent, The Wall Street Journal Webcast: Financial Stability and the Problem of Too-Big-to-Fail Financial Institutions

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Sheila Bair, Former FDIC Chairman Sherrod Brown, Senator (D-OH) Jon Huntsman, Former Governor (R-UT) Peterson Institute for International Economics, Washington, DC March 5, 2013 http://www.piie.com/events/event_detail.cfm?EventID=265 Paul Tucker, “Shadow banking – thoughts for a possible policy agenda,” a 6-page speech Paul Tucker, Deputy Governor for Financial Stability at the Bank of England, at the European Commission High Level Conference, Brussels, 27 April 2012. http://www.bis.org/review/r120427a.pdf?frames=0 Yasuyuki Fuchita, Richard Herring, and Robert E. Litan, “The Bankruptcy of Bankruptcy,” Rocky Times: New Perspectives on Financial Stability: The U.S. approach to regulating financial institutions and promoting financial stability with Dodd-Frank, pp. 59-87

October 19 and October 26 The International Monetary Fund Background: The IMF’s role in global finance International Monetary Fund, MANAGING DIRECTOR’S GLOBAL POLICY AGENDA, APRIL 2013, http://www.imf.org/external/np/pp/eng/2013/042013.pdf Michael Barnett and Martha Finnemore, Rules for the World, Ch. 3 “Expertise and Power at the International Monetary Fund” (Cornell: 2004) (on e-reserve) Kenneth A. Reinert, Windows on the World Economy: An Introduction to International Economics (Cambridge University Press: 2012), Chapter 17, “The International Monetary Fund ” Chapter 18, “Crises and Responses” (on e-reserve) IMF Lending Mark S. Copelovitch, The International Monetary Fund in the Global Economy: Banks, Bonds and Bailouts, Cambridge University Press, 2010, Chapter 1, “The International Monetary Fund in the global economy” (on e-reserve) and the chapters on Mexico (on e-reserve) IMF, “The Mexican Crisis:No Mountain Too High?” http://www.imf.org/external/pubs/ft/history/2001/ch07.pdf Joseph P. Joyce, The IMF and Global Financial Crises: Phoenix Rising? (Cambridge University Press: 2013), Ch. 7, “The Widening Gyre (East Asia, The IMF and East Asia), pp. 105-119 (on e-reserve) The IMF and Capital Liberalization Jeffrey M. Chwieroth Capital Ideas: The IMF and the Rise of Financial Liberalization, Princeton: 2010, chapter 1, pp. 1-22 (on e-reserve) Kevin P. Gallagher, Stephany Griffith-Jones, and José Antonio Ocampo, eds., Regulating Global Capital Flows for Long-Run Development, Executive Summary, “Capital Account Regulations for Stability and Development: A New Approach” pp. 1-12, http://www.bu.edu/pardee/files/2012/03/RegulatingCapitalTF-March2012.pdf

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For further exploration: Jeffrey M. Chwieroth Capital Ideas: The IMF and the Rise of Financial Liberalization, Princeton: 2010 Mark S. Copelovitch, The International Monetary Fund in the Global Economy: Banks, Bonds and Bailouts, Cambridge University Press, 2010, chapters on South Korea

OECD Report by Kumiharu Shigehara and Paul Atkinson, “Surveillance by international institutions: lessons from the global financial and economic crisis,” May 17, 2011 http://www.oecd-ilibrary.org/economics/surveillance-by-international-institutions_5kgchzchkvd2-en

Olivier Jeanne, Arvind Subramanian, and John Williamson “Who Needs to Open the Capital Account?” PowerPoint presentation http://www.piie.com/publications/papers/20120611ppt.pdf Video (minute 6:30 through minute 29:10) http://www.piie.com/events/event_detail.cfm?EventID=229&Media Peterson Institute for International Economics, June 11, 2012

November 2, November 9, and November 16 The European Union, the Euro, European Sovereign Debt, the European Banking Union Background Desmond Dinan, Ever Closer Union: An Introduction to European Integration, 4th edition, pp. 395-411 (on e-reserve) Sovereign debt Carmen Reinhart and Kenneth Rogoff, This Time is Different: Eight Hundred Years of Financial Folly, (Princeton: 2009), Ch. 13, “The U.S. Subprime Crisis: An International and Historical Comparison,” Ch. 14, “The Aftermath of the Financial Crisis,” and Ch. 15, “International Dimensions of the Crisis” The Colbert Report, “Austerity’s Spreadsheet Error,” April 23, 2013 http://www.colbertnation.com/the-colbert-report-videos/425748/april-23-2013/austerity-s-spreadsheet-error The Colbert Report, “Austerity’s Spread Sheet Error – Thomas Herndon,” April 23, 2013 http://www.colbertnation.com/the-colbert-report-videos/425749/april-23-2013/austerity-s-spreadsheet-error---thomas-herndon Robert Kuttner, The Politics of Austerity in the US and Europe: Why Did a Failure of Laissez-Faire Reinforce the Orthodoxy? Chapter 5 (PDF), “European Disunion” Sovereign Debt Crisis in the Eurozone Bill Marsh, “Data Points: It’s All Connected: An Overview of the Euro Crisis,” (a visual guide) in The New York Times, October 22, 2011 http://www.nytimes.com/interactive/2011/10/23/sunday-review/an-overview-of-the-euro-crisis.html Andrew Hughes Hallett and Juan Carlos Martinez Oliva, “The Importance of Trade and Capital Imbalances in the European Debt Crisis,” January 2013, http://www.piie.com/publications/wp/wp13-1.pdf

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Guido Westerwelle, Federal Minister for Foreign Affairs, Federal Republic of Germany, “The Euro and Europe’s Future,” http://www.brookings.edu/events/2012/01/20-euro-future. Listen to his speech. New York Times, July 27, 2015 (online, updated), “Greece’s Debt Crisis Explained” http://www.nytimes.com/interactive/2015/business/international/greece-debt-crisis-euro.html?_r=0 Jacob Funk Kirkegaard, “Forget about Exits: Europe’s Choreographed Policy Outlook,” July 31, 2015, http://blogs.piie.com/realtime/?p=5130 IMF Country Report No. 13/156, June 2013, Greece: Ex Post Evaluation of Exceptional Access under the 2010 Stand-By Arrangement http://www.imf.org/external/pubs/ft/scr/2013/cr13156.pdf “IMF Concedes Major Missteps in Greece,” in The New York Times, June 5, 2013, http://www.nytimes.com/2013/06/06/business/global/imf-concedes-major-missteps-in-bailout-of-greece.html Browse the European Stability Mechanism website, http://www.esm.europa.eu “European Monetary Disunion: From Maastricht to Agreekment,” a special e-book (2015) by Foreign Affairs. https://www.foreignaffairs.com/anthologies/2015-06-24/europe-s-monetary-disunion?cid=emc-aug15_cfr_member-ebook_page-072115&sp_mid=49155094&sp_rid=ZGVicmFtaWxsZXJuaEBnbWFpbC5jb20S1 Articles to read:

“How to Save the Euro—and the EU: Reading Keynes in Brussels” by Henry Farrell and John Quiggin

“Why Only Germany Can Fix the Euro: Reading Kindleberger in Berlin” by Matthias Matthijs and Mark Blyth

“The Myth of German Hegemony: Why Berlin Can’t save Europe Alone” by Daniela Schwarzer and Kai-Olaf Lang

“Austerity vs. Democracy in Greece” by Mark Blyth and Cornel Ban. European Banking Union Financial stability risks, monetary policy and the need for macro-prudential policy, Speech by Vítor Constâncio, Vice-President of the ECB, Warwick Economics Summit, 13 February 2015 http://www.ecb.europa.eu/press/key/date/2015/html/sp150213.en.html Nicolas Véron, A Realistic Bridge Towards European Banking Union, Number PB 13-17, June 2013 http://www.piie.com/publications/pb/pb13-17.pdf Nicolas Veron,“European Banking Union: Current Outlook and Short-Term Choices,” statement presented at the conference on Banking Union and the Portugese Economy, February 26, 2014 http://www.bruegel.org/fileadmin/bruegel_files/Publications/PIIE_Testimony_Lisbon_Feb2014.pdf Browse the European Central Bank’s website, http://www.ecb.int

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November 23, and November 30 The World Bank Background World Bank PRESS RELEASE July 23, 2013 In Fight to Improve Lives of the World’s Poor, World Bank Group Delivers Nearly $53 Billion in Support to Developing Countries in FY13 http://www.worldbank.org/en/news/press-release/2013/07/23/improve-lives-world-poor-world-bank-group-delivers-nearly-53-billion-support-developing-countries-fy13 Kenneth A. Reinert, Windows on the World Economy: An Introduction to International Economics, (Cambridge University Press: 2012), Chapter 23, “The World Bank,” (on e-reserve) 91 Foreign Aff. 66 (2012) Robert B. Zoellick, “Why We Still Need the World Bank: Looking beyond Aid” 91 Foreign Affairs 66 (2012) https://www.foreignaffairs.com/articles/2012-02-16/why-we-still-need-world-bank World Bank current President, Dr. Jim Yong Kim

Bio: http://www.worldbank.org/en/about/president/about-the-office/bio June 19, 2013 interview: http://www.worldbank.org/en/news/speech/2013/06/19/transcript-reuters-newsmaker-event-with-world-bank-group-president-jim-yong-kim October 1, 2013 speech at George Washington University: http://www.worldbank.org/en/news/video/2013/10/02/president-jim-kim-speech-in-george-washington-university

Issues in Development Delivery The World Bank legal review, volume 6 : improving delivery in development - the role of voice, social contract, and accountability (chapters to be assigned) Mar 03, 2015 The World Bank legal review, volume 5 : fostering development through opportunity, inclusion, and equity (chapters to be assigned) Jan 01, 2014 Asian Infrastructure Investment Bank Read the following short articles:

http://www.cfr.org/global-governance/bank-too-far/p36290

http://blogs.cfr.org/asia/2015/03/16/the-aiib-debacle-what-washington-should-do-now/

http://www.iie.com/publications/opeds/oped.cfm?ResearchID=2794

http://asiasociety.org/blog/asia/us-treasury-secretary-softens-view-china-led-infrastructure-bank-stresses-high-standards-a

http://www.piie.com/events/event_detail.cfm?eventid=393&tab=summary

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http://www.nytimes.com/roomfordebate/2015/04/06/when-us-allies-join-the-china-led-development-bank/regional-institutions-can-be-good-for-world-policy

http://www.aljazeera.com/news/americas/2014/07/brics-launch-world-bank-imf-rivals-20147155273955388.html

http://fpif.org/chinas-offering-a-world-bank-alternative-and-u-s-allies-are-signing-up/ http://www.marketplace.org/topics/world/us-allies-rush-join-world-bank-alternative http://www.cfr.org/councilofcouncils/global_memos/p36088

For further exploration:

David A. Phillips, Reforming the World Bank: Twenty Years of Trial – And Error, Cambridge University Press: 2010

Sebastian Mallaby, The World's Banker: A Story of Failed States, Financial Crises, and the Wealth and Poverty of Nations, 2006

December 7 The Financial Stability Board Background Browse these two websites: Financial Stability Board: http://www.financialstabilityboard.org/ Bank for International Settlements, http://www.bis.org/ -----------------------

Jack Ewing, “Financial Stability Board to Propose Stricter Capital Rules for Global Banks” New York Times, November 10, 2014 http://dealbook.nytimes.com/2014/11/10/financial-stability-board-to-propose-stricter-capital-rules-for-global-banks/?_r=0 Bank for International Settlements (BIS), “Is the Unthinkable Becoming Routine?” June 28, 2015 https://www.bis.org/publ/arpdf/ar2015e1.htm For further exploration

Pierre-Hugues Verdier, “The Political Economy of Financial Regulation,” Indiana Law Journal, Vol. 88, (2013) available at http://ssrn.com/abstract=2064875 Organization of Securities Commissions (IOSCO) Testimony of Ms. Kathleen L. Casey, Commissioner, U.S. Securities and Exchange Commission, “Mechanisms for international cooperation in securities market regulation,” September 30, 2009 http://banking.senate.gov/public/index.cfm?FuseAction=Files.View&FileStore_id=a3381afe-030b-4c16-97df-d4b3e6d01c96

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Browse the website of the International Organization of Securities Commissions: http://www.iosco.org/ Financial Stability Board (FSB) Asian Development Bank Institute Policy Brief 30, August 2009, “Unregulated Entities, Products, and Markets: Challenges for Monitoring and Regulation http://www.adbi.org/files/2009.08.12.rpb30.unregulated.entities.products.markets.pdf

Brooke Masters, “FSB Seeks to Tame Shadow Banking,” in Financial Times, November 18, 2012 http://www.ft.com/intl/cms/s/0/23eefd10-3175-11e2-b68b-00144feabdc0.html#axzz2CdmN6R6m

Browse the website of the International Accounting Standards Board, http://www.iasb.org/Home.htmInternational

FINAL NOTES 1. This syllabus may be updated if needed during the semester.

2. New Voices in Public Policy Papers in this course can be considered for nomination for publication in New Voices in Public Policy. New Voices is a student and faculty-reviewed journal that shares the best of our student work with the rest of the world. 3. SPGIA statement on special needs of students (Reasonable standard accommodation) If you are a student with a disability and you need academic accommodations, please see me and contact the Disability Resource Center (DRC) at 993-2474. All academic accommodations must be arranged through the DRC. 4. SPGIA Statement on Plagiarism The profession of scholarship and the intellectual life of a university as well as the field of public policy inquiry depend fundamentally on a foundation of trust. Thus any act of plagiarism strikes at the heart of the meaning of the university and the purpose of the School of Public Policy. It constitutes a serious breach of professional ethics and it is unacceptable. Plagiarism is the use of another’s words or ideas presented as one’s own. It includes, among other things, the use of specific words, ideas, or frameworks that are the product of another’s work. Honesty and thoroughness in citing sources is essential to professional accountability and personal responsibility. Appropriate citation is necessary so that arguments, evidence, and claims can be critically examined. Plagiarism is wrong because of the injustice it does to the person whose ideas are stolen. But it is also wrong because it constitutes lying to one’s professional colleagues. From a prudential perspective, it is

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shortsighted and self-defeating, and it can ruin a professional career. The faculty of the School of Public Policy takes plagiarism seriously and has adopted a zero tolerance policy. Any plagiarized assignment will receive an automatic grade of “F.” This may lead to failure for the course, resulting in dismissal from the University. This dismissal will be noted on the student’s transcript. For foreign students who are on a university-sponsored visa (eg. F-1, J-1 or J-2), dismissal also results in the revocation of their visa. To help enforce the SPP policy on plagiarism, all written work submitted in partial fulfillment of course or degree requirements must be available in electronic form so that it can be compared with electronic databases, as well as submitted to commercial services to which the School subscribes. Faculty may at any time submit student’s work without prior permission from the student. Individual instructors may require that written work be submitted in electronic as well as printed form. The SPP policy on plagiarism is supplementary to the George Mason University Honor Code; it is not intended to replace it or substitute for it.