As a reference I would start from this book by Benoît Mandelbrot, the inventor of fractals:

The (mis)behaviour of markets : a fractal view of risk, ruin, and reward https://g.co/kgs/m9StvD

In terms of approach I would see an interest in trying out the well established methodology in cyber security (fight against cybercrime) :

-Threat analysis

Applied to financial system

-Adversary model

Who has interest to destroy or damage? Who has no awareness of responsibility to respect the system?

-Defence and Response

Take the paradigm of a key financial place: London. Use the scenario of WW2 to illustrate:

-radar detection of invaders of air space

-artillery or airborne response.

Hence dissuasion, detection, response... In the financial system "air space".

Financial development and economic growth

tHANK YOU

cyber risk for financial institutions all over the world

The above discussion inspired me to the following considerations:

Has investment banking been restructured after the global financial crisis of 2008?

Has investment banking been restructured after the global financial crisis of 2008 so that another such crisis would not happen again?

I believe that the risk continues to grow in financial systems. This means that another global crisis can not be ruled out in the next few years. The financial system has not been repaired, and necessary investment programs for prudential systems have not been forced on investment banks. Large banks are becoming even larger. in autumn 2008 one of Lehman Brothers investment banks collapsed but several other similar ones earned in this crisis, in addition, there are many indications that they have contributed significantly to generating such a high systemic risk, they used the crisis to their business goals. The investment banks were not restricted from taking such high credit risk, which contributed to the outbreak of the global financial crisis in 2008. The system still remains vulnerable, the procedures are still not honestly observed. The fact that another global financial crisis will generate investment banks is almost certain. The only question is when will it happen?

Please, answer, comments.

I invite you to the discussion.

In addition, I suggest the following questions and research problems in the above topic:

What would be the effects of the global financial crisis of 2008 if interventionist bank bailout were not used?

What would be the effects of the global financial crisis of 2008 if the interventionist rescue of financial institutions and large key manufacturing enterprises before the bankruptcy was not applied?

If the state did not launch anti-crisis state intervention programs in the situation of the emerging largest global financial and economic crises, such as during the global financial crisis of 2008, the scale of negative economic and financial aspects of such crises would be many times greater. Then it could lead to institutional, political and organizational crisis, lack of citizens' confidence in financial institutions and institutions, money would lose its economic functions, a deepened multifaceted crisis of developed economies would emerge and there would be a risk of collapse of the capitalist system.

If during the global financial crisis of 2008 interventionist financial institutions and large key manufacturing enterprises were not used to save bankruptcy, the scale of the deconcussion of many national economies would be many times greater. The scale of unemployment, decrease in production and investment decline would be much greater than that which occurred since the end of 2008. The economic crisis with a high scale of the economic downturn would also include the largest developed economies, including the US economy, if the state did not grant preferential loans to banks using multibillion aid packages and did not launch a program of junk debt collection with the highest level of credit risk. If these intervention assistance packages were not used, recession, chaos, financial systems would be effective in many large national economies, and the scale of negative effects would be difficult to estimate.

On the other hand, the costs of the multi-billion dollar state rescue programs have been passed on to the whole of society, which is not responsible for triggering the financial crisis. Whereas investment banking, in which most sources of the global financial crisis from 2008 were diagnosed, also received financial support. In addition, some of the investment banks used low-interest loans not only to stimulate lending, but also to take over other failing financial institutions and to pay additional bonuses to the managerial staff, which was unquestionably regarded as unethical and inconsistent with the principles of good relations and the essence of public trust.

In addition, a significant part of the money from the aid packages was finally invested in securities listed on stock exchanges. Thanks to this, optimism in the capital markets quickly returned. In mid-September 2008, when bankrupt Lehman Brothers investment bank, a bank with more than 100 years of history, the 4th largest investment bank in the world, there was a stock market crash that began the global financial crisis of 2008. However, after the quarters from the beginning of the stock market crash, stock prices and other stock exchange assets started to increase again to market value, after several years to break the highest historically levels of stock market indices from 2007 and autumn of 2008.

In this way, citizens as shareholders felt richer again and the problem of the origin of the financial crisis and the need for improvement of the financial system in the matter of the necessary refinement of credit risk management instruments could be described as colloquium. In this way, extra money added to the system, which should create additional economic values ​​added in the economy, did not create them because they largely channeled in the financial system, on the stock exchange markets. In connection with the above, interventionist multibillion aid packages did not contribute to a significant improvement in the functioning of the financial system in the investment banking sector and, as it later turned out, were used to save the state's financial system from the chaos of citizens.

Do you agree with me on the above matter?

In the context of the above issues, I am asking you the following question:

What would be the effects of the global financial crisis of 2008 if the interventionist rescue of financial institutions and large key manufacturing enterprises before the bankruptcy was not applied?

Please reply

I invite you to the discussion

Thank you very much

Dear Friends and Colleagues of RG,

The issues of risk management in the context of determinants of the global financial crisis, globalization processes, technological progress and other factors I described in the publications:

Article Anti-crisis state intervention and created in media images o...

Article ACTIVATING INTERVENTIONIST MONETARY POLICY OF THE EUROPEAN C...

Article A safe monetary central banking policy as a significant inst...

Article Soft monetary central banking policy and Plan for Responsibl...

Article APPLICATION OF DATA BASE SYSTEMS BIG DATA AND BUSINESS INTEL...

Article GLOBALIZATIONAL AND NORMATIVE DETERMINANTS OF THE IMPROVEMEN...

Article Determinants of credit risk management in the context of the...

Article Importance and implementation of improvement process of prud...

Article The role and application of Keynesian macroeconomic anti-cri...

Article THE SHADOW BANKING AS AN EXAMPLE OF INEFFICIENCIES IN THE FU...

I invite you to discussion and cooperation.

Best wishes