TY  - JOUR
AU  - Kane,Edward J.
TI  - Can the European Community Afford to Neglect the Need for More Accountable Safety-Net Management?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 11860
PY  - 2005
Y2  - December 2005
UR  - http://www.nber.org/papers/w11860
L1  - http://www.nber.org/papers/w11860.pdf
N1  - Author contact info:
Edward J. Kane
2325 E Calle Los Altos
Tucson, AZ 85718
Tel: 520-299-5066
E-Mail: edward.kane@bc.edu
AB  - As financial institutions and markets transact more and more cross-border business, gaps and flaws in national safety nets become more consequential. Because citizens of host (home) countries may be made to pay for mistakes made in the home (host) country, Basel's lead-regulator paradigm violates the principle of democratic accountability. Because important differences exist in policymaking authority, instruments, and goals, banking supervisors need to improve their ability to monitor and mitigate the consequences of defects in one another's performance. A straightforward way to enhance both capacities would be to establish opportunities for public trading in debt obligations and reinsurance derivatives issued by country-level deposit-insurance entities.
ER  -