Building a Framework to Address Failure of Complex Global Financial Institutions
Hong Kong Law Journal, Vol. 39, p. 95, 2009
Posted: 13 Jul 2009 Last revised: 21 Feb 2011
Date Written: 2009
During the week of 15 September 2008, the world faced a global systemic financial crisis as the result of the failure of a series of large complex global financial institutions (LCGFIs), including Lehman Brothers, Merrill Lynch, American International Group (AIG) and Halifax Bank of Scotland (HBOS). These failures occurred in the context of legal and regulatory systems which were unprepared to deal with the consequences of such failures, with the result being the current global financial and economic crisis. However, these were not the first such failures the global financial system and domestic regulatory systems have had to face: almost twenty years ago, the world experienced the first failure of an LCGFI, the insolvency of the Bank of Credit and Commerce International (BCCI).
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