by Adam Tooze
21. “Initiative for Europe: A Sovereign, United, Democratic Europe” (speech by Emmanuel Macron, Sorbonne, Paris, September 26, 2017).
22. A. Lerner, “The Economics and Politics of Consumer Sovereignty,” American Economic Review 62 (1972), 258–66.
23. The two most significant contributions being C. Clark, Sleepwalkers (London: Penguin Press, 2013); and J. Leonhard, Pandora’s Box (Cambridge, MA: Harvard University Press, 2017).
24. M. Mann, Sources of Social Power, vol. 2, 2nd ed. (Cambridge: Cambridge University Press, 2012), is a remarkable social theoretic reconstruction.
ABCDEFGHIJKLMNOPQRSTUVWXYZ
INDEX
The page numbers in this index refer to the printed version of this book. The link provided will take you to the beginning of that print page. You may need to scroll forward from that location to find the corresponding reference on your e-reader.
ABCP. See asset-backed commercial paper (ABCP)
Abe, Shinzo, 487
Abhisit Vejjajiva, 258
ABN AMRO, 83
Abramovich, Roman, 129
Ackermann, Josef, 187, 195, 313, 328, 415
adjustable rate mortgages, 70
Admati, Anat, 313
AfD (Alternative für Deutschland), 511–12, 534, 611
Affordable Care Act (ACA), 290, 465, 469, 581
Agenda 2010, 95
Agricultural Bank of China, 249
Ahern, Bertie, 109
AIG, 1, 150–52, 207
bailout of, 178–79
bonuses paid by, 292–93
collateral calls against, 152
credit default swap (CDS) insurance offered by, 56, 86, 150–51
securities lending program of, 151–52
Alfa Group, 224–25
Allied Irish Bank, 185–86
American Recovery and Reinvestment Act. See stimulus package, US
Ameriquest, 75
ANEL, 517
Anglo Irish Bank, 154, 185–86, 359–60
Arab Spring, 372–73
Argentina, 7, 32–33
Armenia, 227, 232, 492
Arroyo, Gloria Macapagal, 2
Arthur Andersen, 54
Asian financial crisis of 1997, 7, 32, 58, 119–20, 255–56
Asian Infrastructure Investment Bank, 487–88
Asmussen, Jörg, 414
asset-backed commercial paper (ABCP), 60, 69
amount held off balance sheet, in 2008, 66–67
implosion of ABCP market, August 2007, 146–47
SIV-ABCP model, 60–61
special purpose vehicles (SPVs) financed by, 85
in transatlantic financial system, 77
Association Agreements, 489–91
Atlantic, 514
austerity, 372
in eurozone, 2011, 373–75
Greece and, 330–31, 340, 376–77, 384–85, 409
Ireland and, 362–65
Italy and, 387
United Kingdom and, 348–51
Austria, 193, 421
automatic stabilizers, 283–86
automobile industry, 157–59, 225, 449–50
AvtoVAZ, 225
Azerbaijan, 506
bail-ins. See private sector involvement (PSI)
bailouts, 12, 166–201
of AIG, 178–79
of European banks, 184–95
of Fannie Mae/Freddie Mac, 172–75
of French banks, 193, 194
G7/G20 meeting of finance ministers at US Treasury, 189, 192–93
of German banks, 188–89, 193, 194–95
of Irish banks, 185–86, 193
mechanisms for, 167
private bad bank plan and, 170
under section 13(3) emergency powers, 171, 178
state-brokered takeover deals, 170–71
of UK banks, 189–91
warfare model for economic policy in, 169–70
Bair, Sheila, 87, 196, 295, 302, 303, 305, 307, 313, 314, 405
balance of financial terror scenario, 35, 40, 41, 75
Banca Intesa, 234
Bankers Trust, 83
Bankia/BFA, 431–32
Banking Reform Act of 2013 (United Kingdom), 541
Bank of America, 48–49, 54, 59–60, 69, 170, 292, 316
exits TARP program, 300
liquidity provided to, 208, 209, 217
Merrill Lynch purchased by, 175–76, 199–200
stress test of, 299
Bank of China, 249
Bank of England, 146
banking supervision reincorporated into, 541
emergency stimulus package following Brexit, 555
Federal Reserve liquidity swap lines and, 211, 212, 213
financial integration of Eastern Europe and, 126
liquidity provided by, 203
QE1 bond purchases of, 285–86
renmimbi internationalization and, 542–43
Bank of Ireland, 185–86
Bank of Japan, 212, 483
Bank of Korea, 260
Bank of Scotland, 208
Bank of Thailand, 258
bankruptcies
of American cities and counties, 450–51
Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, 69
banks
bonuses paid by, 292–93, 306
capital requirements, 84–88
central banks (See central banks)
default insurance premiums on bank debt, 292
European (See European banks)
funding mechanisms for holding mortgage holdings, 60–62
investment (See investment banks)
MBS held on balance sheets of, 59–60
nationalization/breakups considered for US banks, 293–98
recapitalization of, 315–17
regulatory repeal efforts, under Trump, 587–91
savings and loan crisis, 44–45
stress tests, of European banks, 315, 357–58
stress tests, of US banks, 298–301, 309–10
See also specific banks
Bannon, Steve, 468, 573–74, 592
Barclays, 191, 541
leverage of, 88
liquidity provided to, 208, 210, 218
Barroso, José Manuel, 410, 433, 435, 490
Basel I accord, 85, 311
Basel II accord, 85–87, 311
Basel III accord, 311–14
capital requirements, 313–14
global systemically important financial institutions (G-SIFI), regulation of, 311–13
leverage, measurement of, 314
Bayerische Landesbank, 124
Bear Stearns, 53, 55, 59–60
bailout of, 171
bilateral repo market losses of, 147–48
fund bailouts by, 144
Beck, Glenn, 346–47, 368
Belarus, 232, 506
Belgium, 105, 167, 193
Benedict XVI, Pope, 397
Berlusconi, Silvio, 94, 187, 264, 269, 326, 342, 386, 399, 410, 411
Bernanke, Ben, 10, 13, 38–40, 144, 162, 163–64, 196, 442, 444, 460
cautions against austerity efforts, 352, 366–67
Dodd-Frank Act and, 304, 305
on dollar funding needs of European banks, 206
Lehman collapse and, 176, 177
liquidity swap lines and, 212, 215
QE2 and, 367
reappointment of, 304
taper and, 475, 476
TARP proposal and, 180–81
big short, 70–71
Big Short, The (Lewis), 74
bilateral repo market, 61–
62, 147–49
Blair, Tony, 3, 81
Blanchard, Olivier, 529
Blankfein, Lloyd, 559
Bloomberg, 217
Bloomberg, Michael, 88
Blue Dog Coalition, 278
BNP Paribas, 110, 144, 194, 210, 326
Boediono, 258–59
Boehner, John, 174–75, 182, 390–91, 467, 568
Bofinger, Peter, 288
bond vigilantes, 29–30, 284–85, 291, 348, 350, 481, 525, 585
bonuses, Wall Street, 292–93, 306
Bosnia and Herzegovina, 232
Bowles, Erskine, 583
Bradford & Bingley, 184
Brazil, 32, 475, 477, 601
Breitbart, 459
Bretton Woods agreement of 1944, 11
Bretton Woods system, 80
dollar pegged to gold in, 11
euro and, 92
mortgage loan stability and, 45
Brexit, 544–61
Bank of England stimulus package, 555
big business and, 549, 556
Cameron’s attempt to renegotiate EU treaties, 545–48
City of London and, 549, 550, 556
EU and British negotiating positions, 558–61
IMF warns against leaving EU, 550
immigration issue and, 552, 553
May’s agenda for and negotiating positions, 557–60
Obama’s effort to persuade UK to remain in EU, 551
post-2008 crisis break in UK relations with EU, 544–45
Remain campaign message and, 549
sterling plunge following, 554–55
trade and investment at stake for Britain, 548–49
trade union support of Remain, 549–50
US investment bank support of Remain, 550–51
vote for, 553–54
Brookings Institution, 25
Brown, Gordon, 81, 460
bank bailouts and, 184, 187, 189, 190, 193
London G20 summit and, 265–66, 268, 271, 272–73
refuses to allow Barclays takeover of Lehman, 176
Buchanan, Pat, 572
Bucharest, 232
budget, US
crisis of 2011, 390–93
sequester cuts, 464, 465–66
of 2013, 464–66
of 2014, 466–67
of 2017, 581–82
budget deficits
automatic stabilizers and, 283–86
Bush administration and, 27–29, 30, 36, 282–83
Clinton administration and, 27, 29
concerns raised over, 29, 35
Democrats and, 36–37
in eurozone countries, 100–2
scale of, and vulnerability to bond market pressure, 29–30
Buffett, Warren, 40, 458
Buiter, Willem, 182, 389
Bulgaria, 121, 126, 227, 229
Bündchen, Gisele, 40
Bundesbank, 92
Bunning, Jim, 181
Bush, George H. W., 119
Bush, George W., 131, 135, 136, 192
supports Paulson’s bailout plans, 173
UN General Assembly address of, 1–2
Bush, Jeb, 568
Bush administration
budget deficits of, 27–29, 30, 36, 282–83
defense and security spending during, 28
G20 formation and, 262–63
loses support of congressional Republicans, 170
tax cuts passed by, 27–28
BZW, 83
Cable, Vince, 273
California, 65–66
CalPERS, 209
Cameron, David, 350, 354, 417, 538, 540, 543, 545, 546
Canada, 594
Cantor, Eric, 182–83, 353, 568
capital controls, 475
capital flows, 11
collapse in, 2008-2009, 162–63
cross-border, in eurozone, 103–5
into developing economies, 473–74
into Eastern Europe, 126–28
into Orban’s Hungary, 492
into Ukraine, 493–94
Capital in the Twenty-First Century (Piketty), 462
Capital Purchase Program facility, 196–97
capital ratios, 85, 303, 312
capital requirements, 84–88
Basel I accord, 85
Basel II accord, 86
Basel III requirements, 313–14
Dodd-Frank Act requirements, 307
Carney, Mark, 402, 404, 555
Carrier, 577
Carville, James, 29
Case, Anne, 457
CDOs. See collateralized debt obligations (CDOs)
CDS. See credit default swaps (CDS)
CDU, 97, 113, 287, 329, 430, 512, 534
Central Document No. 18 (Chinese Communist Party), 243–44, 247
central banks
Asian central bank swap arrangements, 483
dollar reserves of Europeans, 89–90
ECB swap lines with Sweden and Denmark, 229–30
Fed swap lines provided to, 9–10, 11–12, 210–15, 220–21
independence of, 10–11
temporary bilateral swap arrangements converted to standing arrangements, 482–83
See also Bank of England; European Central Bank (ECB); Federal Reserve; specific central banks
centrist liberalism, 17, 18, 20, 25, 37, 278, 291, 295, 348, 351, 353, 445, 451, 459, 533, 535
Chaffetz, Jason, 392
Chamber of Commerce, American 469, 572
Chapel Funding LLC, 75
Cheney, Dick, 36
China, 4, 30–32, 118, 137, 600–607, 609, 611
allows currency to appreciate, 39–40
calls for new Bretton Woods arrangement, 266–68
consumption-boosting measures, 246–47
domestic investment of, 242
Eurogroup-Syriza debt restructuring confrontation and, 524
exchange rate 32, 33–34, 601–3
financial crisis of 2008 and, 7, 242–54
fiscal stimulus plan, 243–46, 247–51
foreign currency reserves of, 33–34, 602, 605–6
global trade collapse and, 242
growth of, 31–32
GSE exposure of, 73, 239, 240–41
health insurance expansion by, 244–45
high-speed rail network construction, 245
trade balance of, 33, 75, 241–42, 253-54
joins WTO, 31
military spending of, 252–53
PBoC, 249, 267, 543, 600, 612
reserves of, 604, 612
Russia and, 509
sovereign wealth fund of, 35
unemployment in, 242–43
US Treasury purchases of, 30, 241, 392
yuan panic of 2015, 601–8
China Construction Bank, 249
CHOICE Act, 588–90
Chopra, Ajai, 364, 368, 382–83
Chrysler, 157–58, 449
Citigroup, 54, 55, 59–60, 60, 69, 73, 88, 170, 292, 316
bonuses paid by, 306
breakup of, considered by Obama administration, 295–96
capital injections, 197, 199
exits TARP program, 300
liquidity provided to, 207, 209, 217
stress test of, 299–300
City of London, 6, 79, 80–84, 540–45
Brexit and, 549, 550, 556
financial crisis of 2008 and, 541
passporting agreements and, 548–49, 558
post-crisis state of financial industry in, 541–42
renmimbi trading in, 542–43
; transatlantic financial system, role in, 79–84
Clinton, Bill, 25, 29
Clinton, Hillary, 486, 565–66, 567–68, 577
Clinton administration
budget deficits inherited by, 27, 29
Chinese entrance into WTO and, 31
deregulation under, 68, 82
legacy of, for Democrats, 25–27, 29, 36–37, 199–201, 281, 284
relations with European centerists, 98
Club for Growth, 174
CMOs. See collateralized mortgage obligations (CMOs)
Coelho, Pedro Passos, 396, 535
Cohn, Gary, 579
collateralized debt obligations (CDOs), 56
collateralized mortgage obligations (CMOs), 49
collateral rehypothecation, 81–82
Collins, Susan, 307
commercial banks, 54
Commercial Paper Funding Facility, 209
Commerzbank, 171, 198
Committee of European Banking Supervisors, 315
commodity price collapse. See oil and commodity price collapse
Comprehensive Capital Analysis and Review, 310–11
conforming loans, 46–47
Congress, 449
budget impasse, 2011, 390–92, 395, 404
budget impasse, 2013-2014, 464–67, 488
Bush administration budget and, 282–83
Democratic majority from 2006, 36, 170, 172, 200, 573
Democratic midterm defeat 2010, 352–53, 368
Dodd-Frank and, 302–7
IMF quota changes, 469, 479, 488, 500
“Obama stimulus” and, 277–79, 281, 289
Paulson requests emergency powers from, 172–74, 179–84, 195
severity of financial crisis revealed to, 162
Conservative Party in Britain, 538
Consumer Financial Protection Bureau, 304
Costa, António, 536, 537–38
Countrywide Financial, 55, 63, 75, 207
Courage to Act (Bernanke), 12, 163, 442, 444
Cox, Jo, 553
Credit Agricole, 326
credit default swaps (CDS), 52, 56, 150–51, 391
credit-rating agencies
downgrades of European sovereigns, 338, 385, 406, 421, 433–44, 536
G20 plan for reform of, 270
mortgage-backed securities (MBS), AAA rating of, 49–50, 57–58, 70, 151
role in Basel II, 86
S&P downgrade of US, 2011, 392–93
subprime mortgage ratings, 56, 64
Credit Suisse, 75, 154
foreign acquisitions of, 83
liquidity provided to, 208, 210, 215
Crimea, 498
Crosby, Lynton, 549
Cruz, Ted, 568–69
current account deficit, US, 34–35