Edited by John Raymond LaBrosse, Rodrigo Olivares-Caminal and Dalvinder Singh
Foreword: The 2010 Banking Law Symposium on Managing Systemic Risk
Foreword The 2010 Banking Law Symposium on Managing Systemic Risk Charles Enoch1 The symposium covered a great deal of ground. Given the severity of the recent crisis and the need for a massive response, there will continue to be debate for some time. Many of the issues raised are fundamental and still controversial. One can divide the discussion into a number of broad topics. Some of them – such as the future of bank regulation – aim at limiting the occurrence of systemic crisis in the future as well as its consequences; others – for instance the explosion in the size of central bank balance sheets – are amongst the by-products of the handling of crisis, and may or may not have consequences that would need to be addressed later. The macroeconomic aspects are the most visible and immediate sign of the global banking crisis, with the world having fallen into the deepest recession since the 1930s, and still struggling to recover. The long period of uninterrupted growth backed by the ‘great moderation’ came to an abrupt end in 2008. Massive Keynesian-type fiscal expansion was carried out in response pretty much everywhere, to avoid a recession that would lead to something even worse. In some places, such as the US, the stimulus was illuminated with high media visibility; in others, such as China, the stimulus was introduced relatively quietly. The public emphasis was on ‘shovel ready’ projects, rather than well-planned overall programmes. Whilst the stimuli were introduced pretty much by consensus at the time,...