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Domestic Study On The Regulations Of Risk Supervision Of Subordinated Debt

Posted on:2010-01-26Degree:MasterType:Thesis
Country:ChinaCandidate:L HouFull Text:PDF
GTID:2166360275986046Subject:Economic Law
Abstract/Summary:PDF Full Text Request
Since the economic control relax and advances in information technology, financial circles made unprecedented development last century 80's:Large number of financial instruments,financial innovations,include Subordinated Debt is appeared during this period.During the initial stage of Subordinated Debt,because of their own high-risk,high profitability,these bonds have a lot of investment institutions, including investment banks,hedge funds,etc.of all ages.One time,it does stimulate economic development,brought about the recovery of related industries,and has been in hot pursuit of the world financial community.However,the February 13,2007, American New Century Financial Corporation issued a fourth quarter 2006 profit warning.The face of 17.4 billion U.S.dollars from Wall Street dun,as America's second-largest subprime mortgage companies - New Century Financial Corporation announced filed for bankruptcy protection,reduction of 54%of staff on April 2,it become America's largest real estate downturn of a bankruptcy mortgage lenders. This marks the full-blown crisis in the United States Subordinated Debt,evolved into the most serious crisis in United States,since 1998 LTCM bankruptcy,than suffered a serious setback in the global economy.Therefore,people have begun to look at the risks arising from Subordinated Debt rational,in the new economic and financial environment,how to effective supervise the financial innovation tools is much concern.over the risk of Subordinated Debt supervision has become issues of common concern.In this paper,the topic will focus on subprime lending crisis happened in USA. Analysis will be done on the reason why this crisis took place as well as the economic situations of China.By concerning the foreign legislation system relating with the subprime monitoring,and combining the actual situation in domestic subprime market, the text will show a legislation establishing solution by which subprime risk monitoring can be optimized,and this solution is expected to minimize the risk that we would encountered in the global financial shock caused by the mentioned crisis. The whole text is divided into 4 parts.The first part will describe and discuss subprime on definition,characteristics,function and the US crisis.Then the second part will discuss subprime issuance and make comparison in international risk monitoring.The third part,will analyze the subprime risk using theories of economic legislation and legal economics,and draw a conclusion on the necessity of establish the subprime risk monitoring.Finally,the fourth part,combining present domestic legislation system situation of subprime as well as the actual conditions,and through analysis on domestic financial risk monitoring,address a constructional legislation idea for risk monitoring legislation of our country.The conclusion and the content of this text will greatly enrich domestic research on subprime risk lending,and make up some disadvantages that current domestic law has for monitoring subprime crisis. Besides,this text will categorize foreign legislations in this field,and based on which some creative suggestions for present relevant laws will be included.
Keywords/Search Tags:Subordinated Debt, Risk Supervision, Subprime Crisis
PDF Full Text Request
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