The Governance and Regulation of Financial Institutions
Lessons from the Crisis

Wednesday, 16th June 2010

An academic conference to be held at the Madrid campus of the IESE Business School during the Spanish Presidency of the EU
Background | Programme | Research Newsletter Volume 8

ECGI Research Newsletter focuses on the Governance and Regulation of Financial Institutions

After the conference, the ECGI produced another volume of its Research Newsletter focuses drawing on the research papers made available to inform this conference.  Click here or the menu above to download a copy of this Newsletter.

Governments have injected or pledged trillions of Euros to rescue financial institutions. While these institutions are rebuilding their balance sheets and governments are considering exit strategies, international regulatory reform is slowly coming under way. The European Commission has launched consultations on deposit guarantee schemes and an EU framework for cross-border crisis management in the banking sector, covering early intervention, forced restructuring and insolvency (COM(2009) 561 final). Proposals on remuneration in the banking sector have been bundled with the revision of capital rules (SEC(2009) 974 and 975 final).

Under the Spanish EU Presidency this will be followed by a European Commission consultation on the equity corporate governance of banks and internal control. The UK Government has already announced that it will implement the reforms of bank pay and governance proposed by Sir David Walker. Jointly these proposals will have a profound effect on incentives and corporate governance in the banking industry.

This conference will bring together the latest academic research on corporate governance and regulation and some of the best researchers to shed light on what went wrong in the corporate governance of banks, in their structure and scope and in their regulation. The conference will address all the issues the European Commission is consulting on set out in the first paragraph.

The conference will have a traditional academic format with presentations and discussants.  A number of selected practitioners and government officials will also participate. Each paper will have one or two discussants. In addition to the academic presentations there will be a high calibre policy panel. There will be a conference summary and conclusions that will inform the policy debate. The conference materials will be made available to the general public through the European Corporate Governance Institute’s web-site. The meeting will be part of a series of workshops organised by the CEPR during 2010 dealing with all aspects of the crisis.

The meeting will be a natural extension of three recent conferences on corporate governance and the financial crisis the ECGI has organised.
"Corporate Governance Standards and Financial Stability", a Transatlantic Corporate Governance (TCGD) conference hosted in Brussels by the European Commission in September 2008
"The New Role of Government in Corporate Governance", a second TCGD conference hosted in Washington D.C. by the Securities and Exchange Commission in September 2009
“Beyond the Crisis – New Challenges for Corporate Governance”, a conference hosted in Stockholm under the auspices of the Swedish Presidency of the EU in December 2009

Scientific Committee
The Scientific Committee is comprised of Marco Becht (SBS-EM, Brussels, ECGI and CEPR), Patrick Bolton (Columbia, ECGI and CEPR), Xavier Freixas (Universitat Pompeu Fabra, Barcelona and CEPR), Colin Mayer (SBS, Oxford, ECGI and CEPR), Xavier Vives (IESE, ECGI and CEPR)

The organisers are most grateful for the sponsorship of this conference by leading international law firm Clifford Chance

The conference is co-funded under the grant:

Politics, Economics and Global Governance: The European Dimensions, PEGGED Collaborative Projects (CPs) Funded under the EU's Seventh Framework Programme, Contract no. SSH-CT-2008-217559