The Microeconomics and Macropolitics of Systemic Financial Crisis: Bankruptcy as a Point of Reference
Forthcoming in SOVEREIGN INSOLVENCY: POSSIBLE LEGAL SOLUTIONS (Jasna Garasic and Nadia Bodiroga-Vukobrat, eds)(accepted for publication in Springer Press)
34 Pages Posted: 16 Dec 2014
Date Written: December 15, 2014
There have been two major systemic financial crises during the past 15 years, one regionally focused (the Latin American and Asian Financial Crises), the other more global in its reach (the current Global Financial Crisis). Both crises resulted in broad proposals emanating from the G-22 or G-20 to revise the global financial architecture and reform financial and commercial laws. That the G-20 shifted its focus from corporations to consumers should come as no surprise given the origins of the current Global Financial Crisis in the US subprime mortgage crisis, which was itself widely viewed as a failure of consumer protection. More surprising, however, has been the G-20’s failure to include insolvency law reform, whether corporate or consumer, in its sights. This chapter explores the possible reasons for and consequences of this failure.
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