Reputational Risk

Financial services firms are exceptionally vulnerable to reputational risk. Concern over the reputational risk of agreeing to a deferred prosecution was central to the collapse of Arthur Andersen in 2002. The accounting firm refused to agree to a negotiated settlement in the aftermath of the investigation into complicity in the collapse of Enron on the grounds that it would be catastrophic to the firm's standing.  Given the externalities, what mechansisms can be used to leverage the power of reputation as a restraining force? This series explores the options at the level of the firm, the market in which it is nested and the mechanisms open to regulators to design pro-active strategies.

The Complementarity between Financial Supervision and Crisis Resolution: A Gap in the EU Framework at the Time of the Crisis

Giani, Leonardo. The Complementarity between Financial Supervision and Crisis Resolution: A Gap in the EU Framework at the Time of the Crisis. Law and Financial Markets Review, Vol. 4, No. 4, July 2010: 421-427.
Originally Published: 
Saturday, January 1, 2011

SEC Issues Rules for Implementing the Whistleblower Provisions of Section 21F of the Securities Exchange Act of 1934

Section 922 of the Dodd-Frank Wall Street Reform and Consumer Protection Act 2010 established a whistleblower program that requires the Securities and Exchange Commission to pay an award to eligible whistleblowers who voluntarily provide the SEC with original information about a violation of the fed
Originally Published: 
Wednesday, May 25, 2011

US Regulatory Agencies Seek Public Comment on Risk Retention Proposal

In accordance with the risk-retention requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act 2010, six federal agencies are seeking public comment on a proposed rule that would require sponsors of asset-backed securities to retain at least 5 percent of the credit risk of the a
Originally Published: 
Thursday, March 31, 2011

Pages

Show all related resources for Reputational Risk