Book contents
- Frontmatter
- Contents
- Figures
- Tables
- Contributors
- Acknowledgements
- 1 Introduction: rethinking corporate governance – lessons from the global financial crisis
- Part I The failure of the market approach to corporate governance
- 2 Corporate governance causes of the global financial crisis
- 3 The failure of corporate governance and the limits of law: British banks and the global financial crisis
- 4 Where was the ‘market for corporate control’ when we needed it?
- 5 Information asymmetry and information failure: disclosure problems in complex financial markets
- 6 Finance, governance and management: lessons to be learned from the current crisis
- Part II Ownership, internal control and risk management: the roles of institutional shareholders and boards
- Part III Post-crisis corporate governance: the search for new directions
- Index
- References
3 - The failure of corporate governance and the limits of law: British banks and the global financial crisis
Published online by Cambridge University Press: 05 August 2011
Book contents
- Frontmatter
- Contents
- Figures
- Tables
- Contributors
- Acknowledgements
- 1 Introduction: rethinking corporate governance – lessons from the global financial crisis
- Part I The failure of the market approach to corporate governance
- 2 Corporate governance causes of the global financial crisis
- 3 The failure of corporate governance and the limits of law: British banks and the global financial crisis
- 4 Where was the ‘market for corporate control’ when we needed it?
- 5 Information asymmetry and information failure: disclosure problems in complex financial markets
- 6 Finance, governance and management: lessons to be learned from the current crisis
- Part II Ownership, internal control and risk management: the roles of institutional shareholders and boards
- Part III Post-crisis corporate governance: the search for new directions
- Index
- References
Summary
The global financial crisis demonstrated the fragility of the widely accepted faith in prevailing corporate governance ideas and the adequacy of legal mechanisms that were available to buttress these ideas. This was very evident from the fate of British banks after the failure of Northern Rock plc in late 2007 and the subsequent government action to rescue other leading British banks (Treasury Committee, 2008b). After more than two decades of debate in regard to the improvement of corporate governance mechanisms in Britain, it became evident that many of the ideas that had been advanced during this debate have been found to be wanting and were in need of revision or even replacement; these earlier debates had largely sought to legitimize a self-regulatory approach to corporate governance and a minimal involvement of governments in markets.
- Type
- Chapter
- Information
- Corporate Governance and the Global Financial CrisisInternational Perspectives, pp. 50 - 74Publisher: Cambridge University PressPrint publication year: 2011
References
2009 ‘Corporate governance in the modern financial sector’Restoring Financial Stability: How to Repair a Failed SystemNew YorkJohn Wiley & Sons185CrossRefGoogle Scholar
2006 After Enron: Improving Corporate Law and Modernising Securities Regulation in Europe and the United StatesOxfordHart PublishingGoogle Scholar
2005 Company Directors: Principles of Law and Corporate GovernanceSydneyLexisNexis ButterworthsGoogle Scholar
1873 Lombard Street: A Description of the Money Market(1999 edn). New YorkJohn Wiley & SonsGoogle Scholar
2008 Regulatory Capitalism: How It Works, Ideas for Making It Work BetterCheltenhamEdward Elgar PublishingCrossRefGoogle Scholar
2008 The Crunch: The Scandal of Northern Rock and the Escalating Credit CrisisLondonRandom House Business BooksGoogle Scholar
1992 Report of the Committee on the Financial Aspects of Corporate GovernanceLondonGee & CoGoogle Scholar
2006 Gatekeepers: The Professors and Corporate GovernanceNew YorkOxford University PressGoogle Scholar
2009 ‘What went wrong? An initial inquiry into the causes of the 2008 financial crisis’Journal of Corporate Law Studies 9 1CrossRefGoogle Scholar
2003 Commercial Banks and Industrial Finance in England and Wales, 1860–1913Oxford University PressGoogle Scholar
2007 The Role of Independent Directors after Sarbanes-OxleyChicagoAmerican Bar AssociationGoogle Scholar
2009 The Myth of the Rational Market: A History of Risk, Reward, and Delusion on Wall StreetNew YorkHarperCollinsGoogle Scholar
2010 Consultation on a Stewardship Code for Institutional InvestorsLondonFinancial Reporting CouncilGoogle Scholar
2006 Financial Gatekeepers: Can They Protect Investors?Washington, DCBrookings Institution PressGoogle Scholar
1995 Directors' Remuneration: A Report of a Study Group Chaired by Sir Richard GreenburyLondonGee & CoGoogle Scholar
2003 Review of the Role and Effectiveness of Non-Executive DirectorsLondonUK Department of Trade and IndustryGoogle Scholar
2009 http://ssrn.com/abstract=1501187
2008 ‘Lessons from the Northern Rock affair’Journal of Financial Regulation and Compliance 16 8CrossRefGoogle Scholar
2005 ‘Evading Enron: taking principles too seriously in accounting regulation’Modern Law Review 68 594CrossRefGoogle Scholar
2005 Manias, Panics and Crashes: A History of Financial CrisesHoundmillsPalgrave MacmillanCrossRefGoogle Scholar
2008 ‘Northern Rock, UK bank insolvency and cross-border bank insolvency’Journal of Banking Regulation 9 165CrossRefGoogle Scholar
2007 The New Accountability: Corporate Social ResponsibilityCambridge University PressGoogle Scholar
2009 A Colossal Failure of Common Sense: The Incredible Inside Story of the Collapse of Lehman BrothersNew York: Crown BusinessRandom HouseGoogle Scholar
2010 http://ssrn.com/abstract=1448118
2009 HM Treasury: The Nationalisation of Northern Rock: Report by the Comptroller and Auditor General, HC 298 Session 2008–2009, 20 March 2009LondonThe Stationery OfficeGoogle Scholar
1999 Principles of Corporate GovernanceParisOrganisation for Economic Co-operation and DevelopmentGoogle Scholar
2004 Principles of Corporate Governance ParisOrganisation for Economic Co-operation and DevelopmentGoogle Scholar
2009 Corporate Governance and the Financial Crisis: Key Findings and Main MessagesParisOrganisation for Economic Co-operation and DevelopmentGoogle Scholar
2010 Corporate Governance and the Financial Crisis: Conclusions and Emerging Good Practices to Enhance Implementation of the PrinciplesParisOrganisation for Economic Co-operation and DevelopmentGoogle Scholar
2009 A Failure of Capitalism: The Crisis of '08 and the Descent into DepressionCambridge, MAHarvard University PressGoogle Scholar
1975 Where the Law Ends: The Social Control of Corporate BehaviourNew YorkHarper & RowGoogle Scholar
2009 Fool's Gold: How Unrestrained Greed Corrupted a Dream, Shattered Global Markets and Unleashed a CatastropheLondon: LittleBrownGoogle Scholar
2008 ‘Corporate rescue, governance and risk taking in Northern Rock: part 1’The Company Lawyer 29 297Google Scholar
2008 ‘Corporate rescue, governance and risk taking in Northern Rock: part 2’The Company Lawyer 29 330Google Scholar
2009 ‘Raising corporate governance standards in response to corporate rescue and insolvency’Corporate Rescue and Insolvency 2 5Google Scholar
2009 ‘Creating a template for banking insolvency law reform after the collapse of Northern Rock: part 2’Insolvency Intelligence 22 81Google Scholar
2009 ‘Shareholder litigation and the financial crisis: the Northern Rock shareholder appeal considered’Company Law Newsletter1Google Scholar
2008 The Run on the Rock: Fifth Report of Session 2007–08, Volume 1. House of Commons Treasury Committee HC 56–1LondonThe Stationery OfficeGoogle Scholar
2008 The Run on the Rock: Government Response to the Committee's Fifth Report of Session 2007–08. House of Commons Treasury Committee HC 56–11LondonThe Stationery OfficeGoogle Scholar
2009 Banking Crisis: Regulation and Supervision: Fourteenth Report of Session 2008–09. House of Commons Treasury Committee HC 767LondonThe Stationery OfficeGoogle Scholar
2009 Banking Crisis: Dealing with the Failure of the UK Banks: Seventh Report of Session 2008–09. House of Commons Treasury Committee HC 416LondonThe Stationery OfficeGoogle Scholar
2009 Banking Crisis: Reforming Corporate Governance and Pay in the City: Ninth Report of Session 2008–09. House of Commons Treasury Committee HC 519LondonThe Stationery OfficeGoogle Scholar
2009 Banking Crisis: International Dimensions: Eleventh Report of Session 2008–09. House of Commons Treasury Committee HC 615LondonThe Stationery OfficeGoogle Scholar
2009 The Turner Review: A Regulatory Response to the Global Banking CrisisLondonFinancial Services AuthorityGoogle Scholar
2009 www.hm-treasury.gov.uk/Walker_review_information.htm
2008 The Fall of Northern Rock: An Insider's Story of Britain's Biggest Banking DisasterPetersfield, HampshireHarriman HouseGoogle Scholar
- 7
- Cited by