Notes
The following abbreviations are used in the Notes and Bibliography: BIS: Bank for International Settlements BofE: Bank of England CBRC: China Banking Regulatory Commission CD: China Daily FDIC: Federal Deposit Insurance Corporation FRB: Federal Reserve Board FSA: Financial Services Authority GIS: Government Information Services (Daily press releases of the Hong Kong government) HH: Hong Kong Hansard (Official report of the proceedings of the Hong Kong Legislative Council) HKMA: Hong Kong Monetary Authority (and its publication services) HKRS: Government files in the Hong Kong Public Records Office IMF: International Monetary Fund NCNA: New China News Agency OECD: Organisation for Economic Co-operation and Development PBOC: People’s Bank of China PD: People’s Daily (Renmin Ribao) SEC: Securities and Exchange Commission Introduction 1. This point is made by Professor Ricardo J. Caballero in ‘Sudden Financial Arrest’, IMF Economic Review, Vol. 58, Issue 1 (August 2010), pp. 11–3, 17–9. 2. ‘All the more so given some of the burden will fall on Europe, Japan and even, to a much less extent, China,’ he added. Zhou Xiaochuan, PBOC Governor, ‘Instability and Evolution of the Financial System’ (5 December 2007), p. 5. 3. Northern Rock’s irrelevance to the global scene was argued by Verena Ross, FSA Director of Strategy and Risk, ‘Lessons from the Financial Crisis’, speech at the Chatham House Conference on Global Financial Regulation (24 March 2009); Lord Turner, FSA Chairman, ‘The financial crisis and the future of financial regulation’, The Economist’s Inaugural City Lecture (21 January 2009). Notes 130 Notes to pp. 2–4 4. Andrew G Haldane, BofE Executive Director Financial Stability, ‘Rethinking the Financial Network’, speech at the Financial Student Association, Amsterdam (28 April 2009), pp. 9, 10. 5. An excellent example of the regulators’ astonishment at the crisis is Verena Ross, FSA Director of Strategy and Risk, ‘Risk management governance and controls and their importance in banking system and financial sector stability’, speech at the Financial Stability Institute and Executives’ Meeting of East Asia-Pacific Central Banks (18 November 2008). 6. Lord Turner, FSA Chairman, Annual Public Meeting Speech (23 July 2009). 7. Sir John Gieve, BofE Deputy Governor, ‘The City’s Growth: The Crest of a Wave or Swimming with the Stream?’, Society of Chartered Accountants, London (26 March 2007), p. 9. 8. Sir John Gieve, BofE Deputy Governor, ‘Uncertainty, policy and financial markets’, speech at the Barbican Centre (24 July 2007), p. 4. Earlier, in making a similar comparison, another British central banker had quoted Alan Greenspan, then FRB Chairman. Sir Andrew Large, BofE Deputy Governor, ‘Convergence in Insurance and Banking: Some Financial Stability Issues’, speech at the Mandarin Oriental Hotel (12 June 2003), p. 6. 9. The trend was well below the levels which had led to crises in 1987 and 1998, the Bank of England concluded. Sir John Gieve, BofE Deputy Governor, ‘Financial System Risks in the UK — Issues and Challenges’, speech at the Centre for the Study of Financial Innovation Roundtable (25 July 2006), pp. 6, 8–9. 10. Charles Bean, BofE Deputy Governor, ‘Measuring Recession and Recovery: An Economic Perspective’, speech at the RSS Statistics User Forum Conference (27 October 2010), p. 5. 11. Christopher Cox, SEC Chairman, Address to the Joint Meeting of the Exchequer Club and Women in Housing and Finance (4 December 2008). 12. IMF, ‘IMF Executive Board Concludes 2009 Article IV Consultation with the United Kingdom’, Public Information Notice (PIN) No. 09/84 (16 July 2009). 13. Andrew G. Haldane, BofE Executive Director, ‘Small Lessons from a Big Crisis’, remarks at the Federal Reserve Bank of Chicago 45th Annual Conference (8 May 2009), pp. 1–2. 14. Mervyn King, BofE Governor, Address to the 2010 Trades Union Congress, Manchester (15 September 2010), p. 7. 15. Adam S. Posen, BofE Monetary Policy Committee External Member, ‘The British Recovery in International Comparison’, speech at the Society of Business Economists Annual Conference, London (30 June 2010), pp. 2–4. 16. For use of the term in this sense, see Alistair Darling, M.P., Chancellor of the Exchequer, in House of Commons Treasury Committee, Banking Crisis, Vol. I. Oral evidence (London: HMSO, HC 144-I, March 2009), pp. 8, 42. 17. In a retrospective on the global crisis, however, the Chairman of the Federal Reserve Board has claimed that ‘the first lesson’ from the Great Depression was that ‘economic prosperity depends on financial stability’. Ben S. Bernanke, FRB Chairman, ‘Economic Policy: Lessons from History’, speech at the 43rd Annual Alexander Hamilton Awards Dinner, Center for the Study of...
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