Results tagged “coercive rights” from Regulating Wall Street

Banks Have Way to Help Themselves

by Yakov Amihud and Ingo Walter

During the recent credit crisis, U.S. banks in urgent need of capital quickly received
bailout funds from a government fearful of a systemic collapse.

As a way of avoiding the next financial debacle and the consequent socialization of losses, banks should be required to avoid becoming undercapitalized in the first place.

Before providing banks with public funds and putting the taxpayer at risk, the government should require that troubled lenders help themselves by raising capital from their own stockholders through coercive rights.

Read the full opinion editorial at


The Dodd-Frank Act, signed into law in July 2010, represented the most significant and controversial overhaul of the U.S. financial regulatory system since the Great Depression. Forty NYU Stern faculty, including editors Viral V. Acharya, Thomas F. Cooley, Matthew P. Richardson, and Ingo Walter, provide a definitive analysis of the Act, expose key flaws and propose solutions to inform the rules’ adoption by regulators, in a new book, Regulating Wall Street: The Dodd-Frank Act and the New Architecture of Global Finance (Wiley, November 2010).

About Restoring Financial Stability

Previously, many of these faculty developed 18 independent policy papers offering market-focused solutions to the financial crisis, which were published in a book, Restoring Financial Stability: How to Repair a Failed System (Wiley, March 2009).

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