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SUMMARY:ST CATHARINE'S POLITICAL ECONOMY SEMINARS: CHARLES GOODHART - Char
 les Goodhart
DTSTART:20140305T180000Z
DTEND:20140305T193000Z
UID:TALK50744@talks.cam.ac.uk
CONTACT:A.M. Brennan
DESCRIPTION:The next St Catharine's Political Economy Seminar in the serie
 s on the Economics of Austerity\, will be held on Wednesday 5th March 2014
  - Charles Goodhart will give a talk on 'Bail-out or Bail-in?'. The semina
 r will be held in the McGrath Centre at St Catharine's College from 6.00-7
 .30 pm. All are welcome.\n\nCHARKES GOODHART\, CBE\, FBA is Emeritus Profe
 ssor of Banking and Finance with the Financial Markets Group at the London
  School of Economics\, having previously\, 1987-2005\, been its Deputy Dir
 ector.  Until his retirement in 2002\, he had been the Norman Sosnow Profe
 ssor of Banking and Finance at LSE since 1985.  Before then\, he had worke
 d at the Bank of England for seventeen years as a monetary adviser\, becom
 ing a Chief Adviser in 1980.  In 1997 he was appointed one of the outside 
 independent members of the Bank of England's new Monetary Policy Committee
  until May 2000.  Earlier he had taught at Cambridge and LSE.  Besides num
 erous articles\, he has written a couple of books on monetary history\; a 
 graduate monetary textbook\, Money\, Information and Uncertainty (2nd Ed. 
 1989)\; two collections of papers on monetary policy\, Monetary Theory and
  Practice (1984) and The Central Bank and The Financial System (1995)\; an
 d a number of books and articles on Financial Stability\, on which subject
  he was Adviser to the Governor of the Bank of England\, 2002-2004\, and n
 umerous other studies relating to financial markets and to monetary policy
  and history.   His latest books include The Basel Committee on Banking Su
 pervision: A History of the Early Years\, 1974-1997\, (2011)\, and The Reg
 ulatory Response to the Financial Crisis\, (2009).\n\nCONTENT: In this pre
 sentation Charles Goodhart will argue that in previous crises the failures
  of large\, systemic banks (G-SIFIs) have mostly been handled by arranging
  their merger with a stronger bank\, (Lloyds/HBoS\, JPM/Bear Stearns\, BoA
 /Merrill Lynch\, etc.). For a variety of reasons\, that route is now large
 ly blocked. The liquidation of a G-SIFI remains unacceptably dangerous.  S
 o the final alternative is recapitalisation. But who then pays for such re
 capitalisation? The alternatives are bail-out\, via taxpayers\, or bail-in
 \, via junior creditors.  There is a general political revulsion against t
 axpayer bail-outs\, and therefore a strong current momentum\, e.g. in the 
 EU SRM proposals\, to require much more bail-in. But in this rush towards 
 bail-in\, its proponents have tended to overlook its many disadvantages. C
 harles Goodhart will argue that these latter flaws will make bail-in even 
 worse than bail-out. But if bail-out should continue\, what will mitigate 
 moral hazard and the unfair advantages of larger banks?  Charles Goodhart 
 will offer suggestions.\n\nPlease contact the seminar organisers Philip Ar
 estis (pa267@cam.ac.uk) and Michael Kitson (m.kitson@jbs.cam.ac.uk) in the
  event of a query. 
LOCATION:The McGrath Centre\, St Catharine's College
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