Skip to main content Accessibility help

We use cookies to distinguish you from other users and to provide you with a better experience on our websites. Close this message to accept cookies or find out how to manage your cookie settings.

Close cookie message
×
Hostname: page-component-cd9895bd7-gvvz8 Total loading time: 0 Render date: 2024-12-22T21:53:53.401Z Has data issue: false hasContentIssue false

3 - Why did Australia fare so well in the global financial crisis?

Published online by Cambridge University Press:  05 December 2012

Eilís Ferran ,
Niamh Moloney ,
Jennifer G. Hill  and
John C. Coffee, Jr
By
Jennifer G. Hill
Eilís Ferran
Affiliation:
University of Cambridge
Niamh Moloney
Affiliation:
London School of Economics and Political Science
Jennifer G. Hill
Affiliation:
University of Sydney
John C. Coffee, Jr
Affiliation:
Columbia Law School, New York
Get access

Summary

Introduction

The history of corporate governance is also a history of crises and scandals.

Klaus J. Hopt

Australia provides an intriguing case study in relation to the global financial crisis. At first sight, at least, Australia appears to have withstood the crisis remarkably well, living up to its famous description as “the lucky country.” This has been the source of numerous laudatory statements by government officials and others throughout the global financial crisis. In 2008, the Governor of Reserve Bank of Australia commented, for example, that “there would be very few countries, if any, which would not envy Australia's fiscal position.”

Although the impact of the financial crisis has been less severe in Australia than in many other jurisdictions, including common law jurisdictions such as the United Kingdom and the United States, it cannot be said that Australia escaped the crisis unscathed. There were, for example, a number of high-profile corporate collapses. Also, more recently, messages concerning the state of the Australian economy have become decidedly mixed. There is a growing perception that economic performance is uneven, and that there exists a widening “two speed” or “multi-speed” economy, where “not everybody. . . is in the fast lane.” This refers to the fact that, in contrast to Australia’s booming resources sector, large segments of the economy have experienced weak consumer spending in recent times.

Type
Chapter
Information
The Regulatory Aftermath of the Global Financial Crisis , pp. 203 - 300
Publisher: Cambridge University Press
Print publication year: 2012

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Hopt, K. J., “Comparative corporate governance: the state of the art and international regulation,”American Journal of Comparative Law, 59 (2011), 1–72, at 4–5.CrossRefGoogle Scholar
Horne, D., The Lucky Country (Melbourne: Penguin Books, 1964).Google Scholar
Parliamentary Joint Committee on Corporations and Financial Services (Australia), Inquiry into Financial Products and Services in Australia (Canberra: Commonwealth of Australia, 2009).Google Scholar
Critchlow, A., “The view from Sydney: the upbeat outlook fades down under,” Wall Street Journal, July 18, 2011, p. C7
Smith, P., “Australia growth exceeds expectations,” Financial Times, September 8, 2011, p. 10.
Murdoch, S., “Stevens delivers a wake-up call on rates – Quarterly economic outlook,” The Australian, June 16, 2011, p. 32.
La Porta, R., Lopez-de-Silanes, F., Shleifer, A. and Vishny, R., “Law and finance,”Journal of Political Economy, 106 (1998), 1113–55;CrossRefGoogle Scholar
La Porta, R., Lopez-de-Silanes, F. and Shleifer, A., “Corporate ownership around the world,”Journal of Finance, 54 (1999), 471–517.CrossRefGoogle Scholar
Skeel, D. A. Jnr., “Corporate anatomy lessons,”Yale Law Journal, 113 (2004), 1519–77, at 1544–5.CrossRefGoogle Scholar
Banner, S., “What causes new securities regulation? 300 years of evidence,”Washington University Law Quarterly, 75 (1997), 849–55, at 850Google Scholar
Bora, B. and Lewis, M. K., “The Australian financial system: evolution, regulation and globalization,”Law & Policy in International Business, 28 (1997), 787–811Google Scholar
Hill, J. G., “Regulatory responses to global corporate scandals,”Wisconsin International Law Journal, 23 (2005), 367–416.Google Scholar
Langevoort, D. C., “The social construction of Sarbanes-Oxley,”Michigan Law Review, 105 (2007), 1817–55Google Scholar
Romano, R., “The Sarbanes-Oxley Act and the making of quack corporate governance,”Yale Law Journal, 114 (2005), 1521–611Google Scholar
Gower, L. C. B., “Some contrasts between British and American corporation law,”Harvard Law Review, 69 (1956), 1369–402CrossRefGoogle Scholar
Coffee, J. C. Jnr., “Law and the market: the impact of enforcement,”University of Pennsylvania Law Review, 156 (2007), 229–311;Google Scholar
Jackson, H. E., “Variation in the intensity of financial regulation: preliminary evidence and potential implications,”Yale Journal on Regulation, 24 (2007), 253–90.Google Scholar
Skeel, D. A., “Governance in the ruin,”Harvard Law Review, 122 (2008), 696–743Google Scholar
Milhaupt, C. J. and Pistor, K., Law and Capitalism: What Corporate Crises reveal about Legal Systems and Economic Development around the World (University of Chicago Press, 2008).CrossRefGoogle Scholar
Brummer, C., “Post-American securities regulation,”California Law Review, 98 (2010), 327–84;Google Scholar
Verdier, P., “Mutual recognition in international finance,”Harvard International Law Journal, 52 (2011), 55–108, at 65.Google Scholar
Financial Services Authority (UK), The Turner Review: A Regulatory Response to the Global Banking Crisis (London: FSA, 2009), p. 39ff.Google Scholar
Coffee, J. C. Jnr., “Financial crises 101: what can we learn from scandals and meltdowns – from Enron to subprime?” in Austin, R. P. (ed.), The Credit Crunch and the Law (Sydney: Ross Parsons Centre of Commercial, Corporate and Taxation Law, 2008), pp. 37–56, at p. 37.Google Scholar
Financial System Inquiry, Final Report of the Financial System Inquiry (“Wallis Report”) (Canberra: Commonwealth of Australia, 1997), Overview, “The financial system: towards 2010,” p. 6.Google Scholar
World Economic Forum, The Financial Development Report 2009 (Geneva and New York: World Economic Forum, 2009), p. xi.Google Scholar
Henry, K., “Mutual recognition of financial services regulation: opportunities and challenges for Australia,” address to the Australian Securities and Investments Commission (ASIC) Summer SchoolOur Financial Markets: The Big Issues, Melbourne, February 19, 2008.Google Scholar
Committee of Inquiry into the Australian Financial System (“Campbell Committee”), Australian Financial System – Interim Report (Canberra: Australian Government Publishing Service, 1980).Google Scholar
Perkins, J. O. N., The Deregulation of the Australian Financial System: The Experience of the 1980s (Melbourne University Press, 1989)).Google Scholar
Goddard, G. K., “Bank mergers policy and competition law enforcement: a comparison of recent experience in Australia and Canada,”Banking and Finance Law Review, 15 [1999–2000], 181–248.Google Scholar
Hill, J. G., “Institutional investors and corporate governance in Australia” in Baums, T., Buxbaum, R. M. and Hopt, K. J. (eds.), Institutional Investors and Corporate Governance (Berlin, New York: Walter de Gruyter, 1994), pp. 583–607, at pp. 583, 588–9.Google Scholar
Lloyd, J., “The Russian devolution,” New York Times, August 15, 1999, p. 34
Allen Consulting Group, Enhancing Financial Stability and Economic Growth: The Contribution of Superannuation, Report to the Association of Superannuation Funds of Australia (ASFA) (Melbourne: Allen Consulting Group, 2011), p. 7.Google Scholar
IBISWorld, Finance and Insurance in Australia, Industry Report (2008)Google Scholar
Smith, P., “Lehman faces legal threat over CDO deals,” Financial Times, December 17, 2007, 1
Grennan, H., “Subprime stoush head to court,” Sydney Morning Herald, January 15, 2008, p. 22.
Ferran, E., “The break-up of the Financial Services Authority,”Oxford Journal of Legal Studies, 31 (2011) 455–80, at 463.CrossRefGoogle Scholar
United Nations Development Program (UNDP), The Real Wealth of Nations: Pathways to Human Development, Human Development Report 2010, 20th anniversary edition (New York: Palgrave Macmillan, 2010), p. 79.Google Scholar
Nicholls, C. C., “The regulation of financial institutions: a reflective but selective retrospective,”Canadian Business Law Journal, 50 (2011), 129–55;Google Scholar
Walker, D., Walker Review: A Review of Corporate Governance in UK Banks and other Financial Industry Entities (London: Walker Review Secretariat, 2009), [7.1].Google Scholar
OECD Economic Surveys: Australia 2010 (OECD Publishing, 2010)
International Monetary Fund (IMF), Australia: 2010 Article IV Consultation – Staff Report; and Public Information Notice on the Executive Board Discussion, IMF Country Report no. 10/331 (Washington D.C.: IMF, 2010), p. 3.Google Scholar
Australian Government Productivity Commission, Executive Remuneration in Australia, Report No. 49, Final Inquiry Report (Melbourne: Productivity Commission, 2009), p. 34.Google Scholar
Australian Financial Centre Forum, Australia as a Financial Centre: Building on our Strengths (“Johnson Report”) (Canberra: Commonwealth of Australia, 2009), pp. 35–6.Google Scholar
Black, S., Brassil, A. and Hack, M., “The impact of the financial crisis on the bond market,” Reserve Bank of Australia Bulletin, June (2010), 55–62.
Senate Economics Reference Committee, Government's Economic Stimulus Initiatives (Canberra: Commonwealth of Australia, 2009), government senators' minority report, pp. 60–1.Google Scholar
Cazes, S. and Verick, S., “What has happened to Okun's law in the US and Europe? Insights from the Great Recession and longer term trends,” presentation at International Labour Organization (ILO) Research Conference onKey lessons from the crisis and way forward, Geneva, February 16, 2011, p. 3.Google Scholar
Browning, E. S., “Retiring boomers find 401(k) plans fall short,” Wall Street Journal Online, February 19, 2011, p. A1
Reserve Bank of Australia, Financial Stability Review – September 2009 (RBA, 2009), pp. 13–14.Google Scholar
Australian Securities and Investments Commission, ASIC Annual Report 08–09: A Year of Consolidation (Melbourne: ASIC, 2009), p. 6.Google Scholar
Australian Securities Exchange, 2010 Australian Share Ownership Study (Sydney: ASX, 2011), pp. 2–3.Google Scholar
Brown, C. and Davis, K., “The sub-prime crisis Down Under,”Journal of Applied Finance, 18 (2008), 16–28Google Scholar
Murdoch, S., “RBA governor Glenn Stevens defends case for raising interest rates,” The Australian, June 15, 2011.
Fickling, D., “Floods hit Australia economy,” Wall Street Journal, May 10, 2011, p. A9.
Garnham, P. and Smith, P., “Aussie dollar gains as rate cut hopes dashed,” Financial Times (FT.com), July 27, 2011, p. 23.
Hanrahan, P. F., “ASIC and managed investments,”Company and Securities Law Journal, 29 (2011), 287–312Google Scholar
Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into Aspects of Agribusiness Managed Investment Schemes (Canberra: Commonwealth of Australia, 2009), pp. 14–16.Google Scholar
Corporations and Markets Advisory Committee (Australia), Managed Investment Schemes – Discussion Paper (Sydney: CAMAC, 2011), p. 31Google Scholar
Australian Securities and Investments Commission, ASIC Annual Report 07–08: A Year of Change (Melbourne: ASIC, 2008), p. 12;Google Scholar
D'Aloisio, T., “The new regulatory landscape: opening and welcome address,” in Australian Securities and Investments Commission, The New Regulatory Landscape – Report, ASIC Summer School, February 21–3, 2011 (ASIC, 2011), p. 6Google Scholar
Low, H., “Heat on banks after $500 million ABC payout,” Australian Financial Review, June 6, 2011, p. 8
John, D., “Allco hearings reveal failure at every level,” Sydney Morning Herald, March 29, 2010, p. 6
Verrender, I., “Those behind Babcock unscathed in the ruins,” Sydney Morning Herald, September 1, 2011, p. 8.
Murphy, J., “Bank competition in the post-crisis environment,” address to the Citi Australia Investment Conference, Sydney, October 26, 2010, in The Treasury (Australia), Economic Roundup, Issue 4 (2010), pp. 43–51, at pp. 47–8.Google Scholar
Senate Economics References Committee, Competition within the Australian Banking Sector (Canberra: Commonwealth of Australia, 2011), p. 1.Google Scholar
Wymeersch, E., “The structure of financial supervision in Europe: about single financial supervisors, twin peaks and multiple financial supervisors,”European Business Organization Law Review, 8 (2007), 237–306, at 241.CrossRefGoogle Scholar
Pearson, G., Financial Services Law and Compliance in Australia (New York: Cambridge University Press, 2009), .CrossRefGoogle Scholar
The broad referral of powers by the states to the federal government was prompted by the decisions inRe Wakim: Ex parte McNally (1999) 198 CLR 511 (Australia)Google Scholar
R v. Hughes (2000) 202 CLR 535 (Australia)
Stumbles, J., “Personal property security law in Australia and Canada: a comparison,”Canadian Business Law Journal, 51 (2011), 425–46, at 425–6.Google Scholar
Bainbridge, S. M., “Dodd-Frank: quack federal corporate governance round II,”Minnesota Law Review, 95 (2011), 1779–821;Google Scholar
Paredes, , “Proper limits of shareholder proxy access”; E. N. Veasey, “What would Madison think? The irony of the twists and turns of federalism,”Delaware Journal of Corporate Law, 34 (2009), 35–56.Google Scholar
Mayeda, A. and Pasternak, S. B., “Canadian court says single regulator unconstitutional,” Bloomberg Businessweek, December 23, 2011.
Corporations and Markets Advisory Committee (Australia), Guidance for Directors – Report (Sydney: CAMAC, 2010), p. 25.Google Scholar
HIH Royal Commission, The Failure of HIH Insurance: A Corporate Collapse and its Lessons, 3 vols. (Canberra: Commonwealth of Australia, 2003)Google Scholar
Reserve Bank of Australia, Reserve Bank of Australia Annual Report 2011 (Sydney: RBA, 2011), p. 3.Google Scholar
Harper, I. R., “The Wallis Report: an overview,”Australian Economic Review, 30 (1997), 288–300.CrossRefGoogle Scholar
Royal Commission into the Monetary and Banking Systems in Australia, Report (Canberra: Commonwealth Govt. Printer, 1937)Google Scholar
Committee of Inquiry into the Australian Financial System (“Campbell Committee”), Australian Financial System: Final Report of the Committee of Inquiry (Canberra: Australian Government Publishing Service, 1981);Google Scholar
Australian Financial System Review Group (“Vic Martin Review”), Report (Canberra: Australian Government Publishing Service, 1984);Google Scholar
House of Representatives Standing Committee on Finance and Public Administration (“Stephen Martin Committee”), Report – A Pocketful of Change: Banking and Deregulation (Canberra: Commonwealth of Australia, 1991).Google Scholar
Doan, C., Glanville, V., , A.Russell, and White, D., “Greater international links in banking – challenges for banking regulation” in The Treasury (Australia), Economic Round-Up – Spring 2006 (Canberra: Commonwealth of Australia, 2006), pp. 117–30, at pp. 119–20.Google Scholar
Thompson, G. J., “The Wallis Inquiry: perspectives from the Reserve Bank,” Reserve Bank of Australia Bulletin, September (1996), 35–42.
Jay, C., “The day of reckoning” in Adams, John D. (ed.), Collapse Incorporated: Tales, Safeguards and Responsibilities of Corporate Australia (North Ryde, NSW: CCH, 2001), pp. 9–40, at p. 10.Google Scholar
Buffini, F., Hepworth, A. and Priest, M., “Business hits back over HIH reforms,” Australian Financial Review, April 22, 2003, p. 1.
Brown, E. F., “A comparison of the handling of the financial crisis in the United States, the United Kingdom, and Australia,”Villanova Law Review, 55 (2010), 509–75.Google Scholar
Department of the Treasury (US), Blueprint for a Modernized Financial Regulatory Structure (Washington D.C.: Department of the Treasury, 2008), pp. 32, 127.Google Scholar
Brown, E. F., “The new laws and regulations for financial conglomerates: will they better manage the risks than the previous ones?”American University Law Review, 60 (2011), 1339–415, at 1342.Google Scholar
Financial Crisis Inquiry Commission (US), The Financial Crisis Inquiry Report: Final Report of the National Commission on the Causes of the Financial and Economic Crisis in the United States (Washington D.C.: Financial Crisis Inquiry Commission, 2011), p. xviii.Google Scholar
Plender, J., “Rules of engagement,” Financial Times, July 12, 2010, p. 7.
Braithwaite, T., Masters, B. and O'Connor, S., “Tolerance of patchwork rules poses big hurdle,” Financial Times, November 11, 2009, p. 8
Warner, M., “America needs a single bank regulator,” Financial Times, August 6, 2009, p. 11.
Financial Services Authority and the Treasury. HM Treasury (UK), A New Approach to Financial Regulation: Judgement, Focus and Stability (London: HM Treasury, 2010), p. 3.Google Scholar
Pritchard, A. C., “London as Delaware?”Regulation, 32 (2009), 22–8, at 24ff.Google Scholar
Committee on Capital Markets Regulation (US), Interim Report of the Committee on Capital Markets Regulation (Cambridge, MA: Committee on Capital Markets Regulation, 2006);Google Scholar
McKinsey & Company, Sustaining New York's and the U.S.' Global Financial Services Leadership, Report to M. R. Bloomberg and C. E. Schumer (McKinsey & Co., 2007).Google Scholar
Furse, C., “Comment: SOX is not to blame – London is just better as a market,” Financial Times, September 18, 2006, p. 19.
Financial Services Authority (UK), The Supervision of Northern Rock: A Lessons Learned Review (London: FSA Internal Audit, 2008).Google Scholar
Masters, B., “Northern Rock woes take toll on city's reputation,” Financial Times, August 27, 2008, p. 3
Financial Services Authority Board Report, The Failure of the Royal Bank of Scotland (London: FSA, 2011).Google Scholar
HM Treasury (UK), A New Approach to Financial Regulation: The Blueprint for Reform, Cm 8083 (London: HM Treasury 2011), pp. 3, 8.Google Scholar
Tafara, E. and Peterson, R. J., “A blueprint for cross-border access to U.S. investors: a new international framework,”Harvard International Law Journal, 48 (2007), 31–68, at 32.Google Scholar
Pan, E. J., “Challenge of international cooperation and institutional design in financial supervision: beyond transgovernmental networks,”Chicago Journal of International Law, 11 (2010), 243–84Google Scholar
G20 Working Group 1, Enhancing Sound Regulation and Strengthening Transparency – Final Report (2009), p. vi
Joint Forum of the Basel Committee on Banking Supervision, International Organization of Securities Commissions and the International Association of Insurance Supervisors, Review of the Differentiated Nature and Scope of Financial Regulation: Key Issues and Recommendations (Basel, Switzerland: Bank for International Settlements, 2010), p. 4.Google Scholar
Brummer, C., “How international financial law works (and how it doesn't),”Georgetown Law Journal, 99 (2011), 257–327, at 290–5.Google Scholar
Ferrarini, G. A. and Ungureanu, M. C., “Lost in implementation: the rise and value of the FSB principles for sound compensation practices at financial institutions,” Revue Trimestrielle de Droit Financier, No. 1–2 (2011), 60–5.
Financial Stability Forum, FSF Principles for Sound Compensation Practices (2009).
Financial Stability Board, FSB Principles for Sound Compensation Practices: Implementation Standards (2009).
Rogow, G., “Australia's APRA releases Basel III consultation reforms,” Wall Street Journal, November 15, 2011
Basel Committee on Banking Supervision, Basel III: A Global Regulatory Framework for More Resilient Banks and Banking Systems, December 2010 (revised June 2011)
Moloney, N., “Financial market regulation in the post-financial services action plan era,”International and Comparative Law Quarterly, 55 (2006), 982–92, at 992.CrossRefGoogle Scholar
Moloney, N., “The European Securities and Markets Authority and institutional design for the EU financial market – a tale of two competences: Part (2) rules in action,”European Business Organization Law Review, 12 (2011), 177–225CrossRefGoogle Scholar
Cary, W. L., “Federalism and corporate law: reflections upon Delaware,”Yale Law Journal, 83 (1974), 663–705CrossRefGoogle Scholar
Carney, W. J., “The production of corporate law,”Southern California Law Review, 71 (1998), 715–77, at 755Google Scholar
Hill, J. G., “Regulatory show and tell: lessons from international statutory regimes,”Delaware Journal of Corporate Law, 33 (2008), 819–43, at 841Google Scholar
Davidoff, S. M., “Rhetoric and reality: a historical perspective on the regulation of foreign private issuers,”University of Cincinnati Law Review, 79 (2010), 619–49Google Scholar
Cox, J. D., “Coping in a global marketplace: survival strategies for a 75-year-old SEC,”Virginia Law Review, 95 (2009), 941–87, at 941Google Scholar
Mehta, N., “SEC's mutual recognition pause,” Traders Magazine Online News, February 15, 2008
See generally Australian Securities and Investments Commission, Effects of the Australia-New Zealand Mutual Recognition Regime for Securities Offerings – Report 174 (ASIC, 2009)Google Scholar
The Council of Financial Regulators, Review of Financial Market Infrastructure Regulation: Consultation Paper (Canberra: Commonwealth of Australia, 2011), p. 3Google Scholar
Davis, K., “Regulatory responses to the financial sector crisis,”Griffith Law Review, 19 (2010), 117–37CrossRefGoogle Scholar
House of Representatives Standing Committee on Economics, Competition in the Banking and Non-banking Sectors (Canberra: Commonwealth of Australia, November 2008)Google Scholar
Corporations and Markets Advisory Committee (Australia), Aspects of Market Integrity – Report (Sydney: CAMAC, 2009)Google Scholar
Senate Economics References Committee, Report on Bank Mergers (Canberra: Commonwealth of Australia, 2009)Google Scholar
Super System Review (“Cooper Review”), Final Report – Part One: Overview and Recommendations (Canberra: Commonwealth of Australia, 2010)Google Scholar
Corporations and Markets Advisory Committee (Australia), Executive Remuneration: Report (Sydney: CAMAC, 2011)Google Scholar
Corporations and Markets Advisory Committee (Australia), Derivatives: Report (Sydney: CAMAC, 2011)Google Scholar
Mollenkamp, C., Craig, S., Ng, S. and Lucchetti, A., “Lehman files for bankruptcy, Merrill sold, AIG seeks cash,” Wall Street Journal, September 16, 2008.
Swan, W., “Keynesians in the recovery,”Australian Fabian News, 51 (2011), 15–22Google Scholar
Uren, D. and Taylor, L., “How Rudd bet the house,” The Australian, June 19, 2010, p. 1.
Organisation for Economic Co-operation and Development (OECD), OECD Interim Economic Outlook – March 2009 (Paris: OECD, 2009)Google Scholar
Robson, A., “Rudd the profligate; Australia's Prime Minister is making an expensive bet on Keynes,” Wall Street Journal Online, April 23, 2009.
Glynn, J. and Curran, E., “Australia's fast recovery spurs fears it overdid stimulus,” Wall Street Journal, October 13, 2009, p. A15
Meckler, L., “Obama signs stimulus into law,” Wall Street Journal, February 18, 2009.
Chisholm, J., “Darling unveils £20bn fiscal stimulus,” Financial Times, November 24, 2008.
International Monetary Fund, Note by staff of the International Monetary Fund, Group of Twenty – Meeting of the Deputies, January 31–February 1, 2009, London, United Kingdom (Washington D.C.: IMF, 2009), p. 18Google Scholar
Jimenez, K., “How APRA handled the crisis,” The Australian, April 27, 2010, p. 18.
Ribstein, L. E., “Bubble laws,”Houston Law Review, 40 (2003), 77–97Google Scholar
Larsen, P. T., “Amid tumult, intervention is a capital idea,” Financial Times, October 7, 2011, p. 2
Parker, G., Larsen, P. T. and Giles, C., “UK banks to be part-nationalised,” Financial Times, October 8, 2011, p. 1
Larsen, P. T., “Government's move to resuscitate failing system,” Financial Times, October 9, 2011, p. 2.
Saulwick, J. and O'Sullivan, M., “Fears set investors panicking to grab cash,” Sydney Morning Herald, October 11, 2008, p. 39
Wood, A. and Aglionby, J., “Bourses in steep decline across the region,” Financial Times, October 9, 2008, p. 28.
Schich, S., “Financial crisis: deposit insurance and related financial safety net aspects,” OECD Journal: Financial Market Trends, Issue 2 (2008), 73–111
Stutchbury, M., “Rudd needs to straighten out the details of bank guarantees,” The Australian, October 17, 2008, p. 28.
Australian Prudential Regulation Authority, Annual Report 2009 (Commonwealth of Australia, 2009), p. 26Google Scholar
Wing Kee, T., “Guarantees turn into political beasts,” Australian Banking and Finance, vol. 17 no. 19, November 30, 2008, pp. 1, 10–11, at p. 1
Durie, J., “Tweaks coming for deposit guarantee,” The Australian, October 18, 2008, p. 37
Crowe, D., Ludlow, M. and Sutherland, T., “Swan's deposit fix to calm investors,” Australian Financial Review, October 25, 2008, p. 3.
Hewett, J., “RBA warns on bank guarantee as Reserve and Treasury at loggerheads,” The Australian, October 21, 2008.
Wood, A., “Message from Hayek to Rudd with love,” The Australian, October 24, 2008, p. 12
Symons, E. L., “The United States banking system,”Brooklyn Journal of International Law, 19 (1993), 1–46Google Scholar
Hall, M. J. B., “Incentive compatibility and the optimal design of deposit protection: an assessment of UK arrangements,”Journal of Financial Regulation and Compliance, 10 (2002), 115–34CrossRefGoogle Scholar
Milhaupt, C. J., “Japan's experience with deposit insurance and failing banks: implications for financial regulatory design?”Washington University Law Quarterly, 77 (1999), 399–431Google Scholar
Pearson, Financial Services Law and Compliance, p. 276; Australian Prudential Regulation Authority, “Core principles for effective banking supervision: self-assessment for Australia,” Information Paper, April (2011), p. 3
Hockey, J., “Banks need more competition, not more regulation,” The Australian, December 6, 2010, p. 14.
Senate Economic References Committee, Government Measures to Address Confidence Concerns in the Financial Sector – The Financial Claims Scheme and the Guarantee Scheme for Large Deposits and Wholesale Funding (Canberra: Commonwealth of Australia, 2009), p. viiGoogle Scholar
The Treasury (Australia), Post-implementation Review and Regulation Impact Statement: Financial Claims Scheme (Commonwealth of Australia, 2011), pp. 1–9, 78Google Scholar
Schwartz, C., “The Australian Government Guarantee Scheme,” Reserve Bank of Australia Bulletin, March (2010), 19–26, at 20.
Black, S., Brassil, A. and Hack, M., “Recent trends in Australian banks' bond issuance,” Reserve Bank of Australia Bulletin, March (2010), 27–33, at 28.
Australian Office of Financial Management, Annual Report 2008–2009 (Canberra: Commonwealth of Australia, 2009)Google Scholar
Rajendra, G. and Påhlson-Möller, I., “Australian residential mortgage-backed securities update” in Bank, Deutsche, Global Securitisation and Structured Finance 2008 (London: Globe White Page, 2008), pp. 76–84, at p. 76Google Scholar
Rajapakse, P. J., “Issuance of residential mortgage-backed securities in Australia – legal and regulatory aspects,”University of New South Wales Law Journal, 29 (2006), 173–206Google Scholar
The Treasury (Australia), Competitive and Sustainable Banking System (Canberra: Commonwealth of Australia, 2010), pp. 19–20Google Scholar
Yeates, C., “Level playing field would open doors for small lenders,” Sydney Morning Herald, October 30, 2010, p. 6.
Drury, B., “Own your own bank and prosper,” Sydney Morning Herald, July 21, 2010, p. 4.
Verrender, I., “Dedicated little guys can give bankers a run for their money,” Sydney Morning Herald, November 6, 2010, p. 7.
Wayde, M., “Banks grab lion's share of all new home loans,” Sydney Morning Herald, September 26, 2011, p. 5.
Ferguson, A. and Johnston, E., “Back to the bad old days,” Sydney Morning Herald, December 4, 2010, p. 8.
Liondis, G., “Big four tighten grip on home loans,” Australian Financial Review, July 13, 2011, p. 51
Yeates, C., “Covered bonds another string in banks' bow,” Sydney Morning Herald, September 16, 2011, p. 7.
House of Representatives, Banking Amendment (Covered Bonds) Bill 2011, Explanatory Memorandum (2011), [1.2].
Australian Prudential Regulation Authority, Annual Report 2008 (Commonwealth of Australia, 2008), p. 13Google Scholar
Mishkin, S. and Hughes, J., “Australia dips its toe into covered bonds,” Financial Times, November 18, 2011, p. 22.
Hughes, J., “Support rises in US for covered bonds law,” Financial Times, March 16, 2011
Maiden, M., “Covered bonds will help bank funding but aren't a game-changer,” Sydney Morning Herald, November 17, 2011, p. 7
Winkler, S., “United States” in European Covered Bond Council, 2010 ECBC European Covered Bond, 5th edition (2010), pp. 341–4, at p. 341
Alloway, T., “Plan for US covered bonds,” Financial Times, November 10, 2011.
Prior, J., “Covered bond legislation introduced in Senate,” Housing Wire, November 9, 2011.
Australian Prudential Regulation Authority, APS 120 – Securitisation, Prudential Standard, January, 2008, [7].Google Scholar
Shapiro, J., “Crisis delays CBA bond issue,” Australian Financial Review, November 21, 2011, p. 46.
Shapiro, J., Kehoe, J. and Liondis, G., “Euro crisis hits local banks,” Australian Financial Review, November 26, 2011, p. 1.
Yeates, C., “Europe turmoil forces CBA to delay covered bond issue,” Sydney Morning Herald, November 22, 2011, p. 3
Hill, J. G., “The rising tension between shareholder and director power in the common law world,”Corporate Governance: An International Review, (18) 2010, 344–59.CrossRefGoogle Scholar
Mitchell, L., “Protect industry from predatory speculators,” Financial Times, July 8, 2009, p. 9.
Nakamoto, M., “One-way street? As its companies expand abroad, Japan erects new barriers at home,” Financial Times, March 3, 2008, p. 7.
Lander, M. and Timmons, H., “Poison ink aimed at ‘locusts’,” New York Times, March 31, 2006, p. C8.
O'Mahoney, G., “Recent legal developments on market manipulation and insider trading” in Austin, R. P. and von Kowalski, I. L., New Trends in Sharemarket Regulation (Ross Parsons Centre of Commercial, Corporate and Taxation Law, 2011), pp. 59–73, at p. 67Google Scholar
Ali, P., “Short selling and securities lending in the midst of falling and volatile markets,”Journal of International Banking Law and Regulation, 24 (2009), 1–12Google Scholar
Black, A., “Insider trading and market misconduct,”Company and Securities Law Journal, 29 (2011), 313–26Google Scholar
Beber, A. and Pagano, M., “Short-selling bans around the world: evidence from the 2007–09 crisis,” August (2011) (draft paper available on American Finance Association website, forthcoming, Journal of Finance), p. 11.
Durkin, P., Cornell, A. and Crowe, D., “ASIC crackdown on short selling,” Australian Financial Review, September 20, 2008, p. 12.
Hamson, D., Wanzare, M., Smith, G. and Gardner, P., “Has the short-selling ban reduced liquidity in the Australian stock market?,” 4 (2008), Finsia Journal of Applied Finance, 14–20, at 15Google Scholar
Battersby, L. and Williams, R., “Bank stocks hit as ASIC lifts ban on short-selling,” Sydney Morning Herald, May 26, 2009, p. 15.
O'Shaughnessy, V. and Williams, R., “Heat on ASIC over short-selling ban,” The Age, September 24, 2008, p. 1
Main, A., “A long way for short selling rules,” The Australian, May 11, 2009, p. 22.
Main, A., “ASIC's decision can help stability,” The Australian, January 22, 2009, p. 25.
Murdoch, S., “Keep short ban, banks plead,” The Australian, January 21, 2009, p. 19.
Durkin, P., “ASIC urged to lift short-sell ban,” Australian Financial Review, January 7, 2009, p. 36
Ferguson, A., “Financial shorts ban divides market,” The Australian, March 6, 2009, p. 17.
Williams, R. and Battersby, L., “Ban stays as world view is sold short,” The Age, March 7, 2009, p. 1
Sheehan, K., “The regulatory framework for executive remuneration in Australia,”Sydney Law Review, 31 (2009), 273–308Google Scholar
Hill, J. G., Masulis, R. W. and Thomas, R. S., “Comparing CEO employment contract provisions: differences between Australia and the United States,”Vanderbilt Law Review, 64 (2011), 559–611, at 573–4Google Scholar
Chapple, L. and Christensen, B., “The non-binding vote on executive pay: a review of the CLERP 9 reform,”Australian Journal of Corporate Law, 18 (2005), 263–87Google Scholar
Hill, J. G., “Regulatory responses to global corporate scandals,”Wisconsin International Law Journal, 23 (2005), 367–416Google Scholar
Avgouleas, E., “The global financial crisis, behavioural finance and financial regulation: in search of a new orthodoxy,”Journal of Corporate Law Studies, 9 (2009), 23–59CrossRefGoogle Scholar
Bebchuk, L. and Spamann, H., “Regulating bankers' pay,”Georgetown Law Journal, 98 (2010), 247–87, at 255–68Google Scholar
Crotty, J., “Structural causes of the global financial crisis: a critical assessment of the ‘new financial architecture’,”Cambridge Journal of Economics, 33 (2009), 563–80, at 565CrossRefGoogle Scholar
Ferrarini, G. and Ungureanu, M. C., “Economics, politics and the international principles for sound compensation practices: an analysis of executive pay at European banks,”Vanderbilt Law Review, 62 (2011), 431–502Google Scholar
Hill, J. G., “Regulating executive remuneration after the global financial crisis: common law perspectives” in Thomas, R. S. and Hill, J. G. (eds.), Research Handbook on Executive Pay (Cheltenham: Edward Elgar, 2012), pp. 219–40Google Scholar
Carrasco, E. R., “The global financial crisis and the financial stability forum: the awakening and transformation of an international body,”Transnational Law & Contemporary Problems, 19 (2010), 203–20Google Scholar
Bartlett, L., “Global crisis ‘failure of extreme capitalism’: Australian PM,” Agence France Presse, October 15, 2008.
Corporations and Markets Advisory Committee (Australia), Executive Remuneration – Information Paper, July (CAMAC, 2010).
Burgess, K. and Steen, M., “Shell's executive pay plan voted down in shareholder rebellion,” Financial Times, May 20, 2009, p. 15.
Durkin, P., “515 directors face shareholder axe,” Australian Financial Review, February 4, 2012, p. 3.
Wiggins, J., “Companies learn the art of communication,” Australian Financial Review, November 23, 2011.
Burgess, K., “Measures ‘send a powerful message to future chiefs’; plaudits for reforms,” Financial Times, January 24, 2012, p. 3
Burgess, K., “Excessive executive pay faces UK curb,” Financial Times, January 24, 2012, p. 4.
Macfarlane, I., “The crisis: causes, consequences and lessons for the future: the Australian perspective,” in ASIC, Global Crisis: The Big Issues for Our Financial Markets, ASIC Summer School 2009
Winestock, G., “Meet the man we're all banking on,” Australian Financial Review, March 14, 2009, p. 26.
Cornell, A. and Drummond, M., “Culture allowed rogue traders to flourish,” Australian Financial Review, May 29, 2006, p. 61.
Hepworth, A., “The dangers of the unearned bonus,” Australian Financial Review, April 23, 2004, p. 45
Beveridge, J., “NAB eases back into forex,” Herald-Sun, April 19, 2005, p. 29.
Oldfield, S., “Stewart pledges strict new risk controls,” Australian Financial Review, March 15, 2004, p. 53.
Gabaix, X. and Landier, A., “Why has CEO pay increased so much?”The Quarterly Journal of Economics, 123 (2008), 49–100.CrossRefGoogle Scholar
Australian Council of Super Investors (ACSI), CEO Pay in the Top 100 Companies: 2010, Research Paper (2011), p. 19.
Thomas, R. S., “Explaining the international CEO pay gap: board capture or market driven?”Vanderbilt Law Review, 57 (2004), 1171–267Google Scholar
Department for Business Innovation & Skills (BIS), Executive Remuneration, Discussion Paper (BIS, 2011)
Department for Business Innovation & Skills (BIS), A Long-term Focus for Corporate Britain: A Call for Evidence (BIS, 2010), p. 27Google Scholar
Conyon, M. J., Core, J. E. and Guay, W. R., “Are U.S. CEOs paid more than U.K. CEOs? Inferences from risk-adjusted pay,”Review of Financial Studies, 24 (2011), 402–38CrossRefGoogle Scholar
International Institute for Labour Studies, World of Work Report 2008: Income Inequalities in the Age of Financial Globalization, Executive summary: preprint edition (IILS, 2008), p. 3.
Tarrant, D., “Payday paralysis,”Intheblack, 79 (2009), 28–31Google Scholar
Australian Securities and Investments Commission, Working for Australia: Consumers, Investors, Business and Markets, ASIC Annual Report 2005–06 (ASIC, 2006), p. 5Google Scholar
Klan, A., “Savings at risk after Fincorp collapse,” The Australian, March 26, 2007, p. 3.
Egan, L., “Lehman Brothers buys Grange Securities,” Money Management, January 19, 2007.
Sexton, E., “Devil in the detail for complex case,” Sydney Morning Herald, June 17, 2011, p. 1.
Sexton, E., “Dante notes led to a financial inferno,” Sydney Morning Herald, February 23, 2011.
Barrett, J., “Lehman's back. . .in $70m cash grab,” Australian Financial Review, November 11, 2011, p. 13.
Cleary, P., Too Much Luck: The Mining Boom and Australia's Future (Black Inc., 2011)Google Scholar
Smith, P., “Australia's mining boom masks crisis in economy,” Financial Times, August 5, 2011, p. 4.
Stevens, G., “The resources boom,” remarks by the Governor of the Reserve Bank of Australia Glenn Stevens at the Victoria University Public Conference on The Resources Boom: Understanding National and Regional Implications, Melbourne, February 23, 2011
Department of Foreign Affairs and Trade (Australia), Trade at a Glance 2011 (ACT: DFAT, 2011), p. 2Google Scholar
The Treasury (Australia), Australia's Future Tax System Review – Report to the Treasurer (ACT: Commonwealth of Australia, 2009)Google Scholar
Fry, E., “Australian PM waters down mining tax,” Financial Times, July 1, 2010.
Walsh, K., “Call to take slice of bank profits,” Australian Financial Review, September 28, 2011, p. 10.
Wilson, P., “Rio chief uses Rudd case as a warning – mining tax battle,” The Australian, July 10, 2010, p. 28.
Stevens, G., “The economic situation,” address by the Governor of the Reserve Bank of Australia to the CEDA Annual Dinner, Melbourne, November 19, 2008, Reserve Bank of Australia Bulletin, December (2008), 13–17
McDonald, T. and Morling, S., “The Australian economy and the global downturn – Part 1: Reasons for resilience” in The Treasury (Australia), Economic Roundup, Issue 2 (2011), pp. 1–31, at pp. 22–4.
Stone, J., “Growth, jobs and prosperity: economic progress under the Howard government,”Quadrant (Sydney), 53 (1–2) (2009), 14–20Google Scholar
Laurie, K. and McDonald, J., “A perspective on trends in Australian Government spending,” in The Treasury (Australia), Economic Roundup, Summer 2008, pp. 27–49, at p. 44.
Guy Woods, “International Comparisons of National Debt,” Parliamentary Briefing Book, Parliament of Australia, Parliamentary Library (2010), citing data from International Monetary Fund, Navigating the Fiscal Challenges Ahead, Fiscal Monitor, May 14, 2010
OECD, OECD Employment Outlook 2009: Tackling the Jobs Crisis (Paris: OECD, 2009), p. 31Google Scholar
Guy, R. and Kitney, D., “RBA cut to boost economy,” Australian Financial Review, September 1, 2008, p. 1
Smith, P., “Australia makes first rate cut in seven years,” Financial Times, September 3, 2008, p. 4
Hartcher, P., “Fortress Australia,” Sydney Morning Herald, October 1, 2008, p. 1
Frangos, A. and Hilsenrath, J., “Australia rate rise poses a global policy challenge,” Wall Street Journal, October 7, 2009, p. A14
Lauricella, T., “Recovery hopes stir markets – Australian rate rise spurs stock, commodity rallies; gold hits record high as dollar falls,” Wall Street Journal, October 7, 2009, p. A1
Smith, P., “Rates cut as Rudd warns on growth,” Financial Times, December 3, 2008, p. 3
Ryan, S., “Labor, RBA in post-GFC split: WikiLeaks,” The Australian, August 31, 2011, p. 1
Ryan, S., “Turnbull ‘vindicated’ in opposition to stimulus,” The Australian, September 1, 2011, p. 2.
Robertson, R., Economist, Macquarie Bank, Opening Statement to the Senate Economic Committee Inquiry, Proof Committee Hansard, October 28, 2009, p. 43.
Metherell, L., “Stimulus ‘served Australia well’ despite waste,” ABC News (online), August 6, 2010.
Stiglitz, J., “In praise of stimulus,” The Age, August 9, 2010, p. 8.
(Cth) (“APRA Amendment Bill 2003”), Explanatory Memorandum (2003)
Boreham, T., “Costello moves to sack APRA board,” The Australian, June 6, 2003, p. 18.
Elias, D., “Damages for HIH bust may top $1bn,” The Age, July 15, 2003, p. 1.
Kohler, A., “Saved by dumb luck,” Business Spectator, March 2, 2008
McCoach, L. and Landy, D., “Australia” in Putnis, J. (ed.), The Banking Regulation Review (London: Law Business Research Ltd, 2010)Google Scholar
Australian Prudential Regulation Authority, Annual Report 2011 (Commonwealth of Australia, 2011)Google Scholar
Yeates, C., “Level playing field would open doors for small lenders,” Sydney Morning Herald, October 30, 2010, p. 6.
Donovan, B. and Gorajek, A., “Developments in the structure of the Australian financial system,” Reserve Bank of Australia Bulletin, June Quarter (2011), 29–40, at 30.
Global Finance, “World's 50 safest banks 2011,” Global Finance Magazine, August 18, 2011 (ratings as of August 11, 2011)
World Economic Forum, The Financial Development Report 2011, Insight Report (World Economic Forum, 2011), p. xiii
Bell, A., “Banks face ratings downgrade on funding,” AAP Financial News Wire, January 30, 2012.
Drummond, M., “Bad debts mar NAB's $2 bn profit,” Australian Financial Review, April 29, 2009, p. 1.
Rollins, A. and White, A., “Lenders countenance new era of low credit growth,” Australian Financial Review, March 25, 2011, p. 47.
The Treasury (Australia), Study of Financial System Guarantees (“Davis Report”) (Commonwealth of Australia, 2004)
Cornell, A., “Once bitten: how Australia's banks dodged the crisis,” Australian Financial Review, December 21, 2009, p. 1.
Yeates, C., “Four Pillars policy saved us: Macfarlane,” Sydney Morning Herald, March 3, 2009.
Tumbarello, P., “Australian, New Zealand banks remain sound during global crisis,” IMF Survey Magazine: Countries & Regions, January 22, 2010
Feldstein, M., “How to help people whose home values are underwater; the economic spiral will get worse unless we do something about negative equity,” Wall Street Journal, November 18, 2008, p. A21.
Black, B., Cheffins, B. and Klausner, M., “Outside director liability,”Stanford Law Review, 58 (2006), 1055–159Google Scholar
Australian Prudential Regulation Authority, “A recent history of superannuation in Australia,”APRA Insight, 2 (2007), 3–10Google Scholar
Donald, M. Scott, “What's in a name? Examining the consequences of inter-legality in Australia's superannuation system,”Sydney Law Review, 33 (2011), 295–318Google Scholar
Amendment Bill 2011 (Cth), Explanatory Memorandum (2011), p. 3
The Treasury (Australia), Stronger Super – Government Response (Canberra: Commonwealth of Australia, 2010), p. 3Google Scholar
Ergas, H., “Super chance to reform system,” The Australian, April 27, 2011, p. 1
Strine, L. E., “Toward common sense and common ground? Reflections on the shared interests of managers and labor in a more rational system of corporate governance,”Journal of Corporate Law, 33 (2007), 1–20Google Scholar
Stout, L. A., “The mythical benefits of shareholder control,”Virginia Law Review, 93 (2007), 789–809Google Scholar
Clark, R. C., “The four stages of capitalism: reflections on investment management treatises,”Harvard Law Review, 94 (1981), 561–82CrossRefGoogle Scholar
Barrett, J., “Making good use of that spare magic $1 million,” Australian Financial Review, February 7, 2007, p. 29.
Taylor, M., “The million dollar question,” Money Management, April 5, 2007, p. 32.
Australian Government Future Fund, Future Fund Annual Report 2005–06 (Commonwealth of Australia, 2006), p. 8Google Scholar
Toohey, B., “Solving a problem that's already fixed,” Australian Financial Review, September 13, 2004, p. 8.
Australian Government Future Fund, Future Fund: Australia's Sovereign Wealth Fund – Annual Report 2010–2011 (Future Fund Board of Guardians, 2011), p. 3.
Mitchell, A., “Future Fund shouldn't be shackled,” Australian Financial Review, June 18, 2005, p. 45.
Baker, P. and Skulley, M., “Piggy bank for super bills welcomed,” Australian Financial Review, September 13, 2004, p. 22
Dunstan, B., “The biggest bucket of money, unspent,” Australian Financial Review, January 20, 2007, p. 24.
Australian Government Future Fund, Annual Report 2006–07 (Future Fund Board of Guardians, 2007), p. 8Google Scholar
Murdoch, S., “Big shot,” The Australian, February 7, 2007, p. 24.
Wright, C., “Surcharge savings to give super boost to funds,” Australian Financial Review, May 25, 2005, p. 44.
Friedman, M. (with the assistance of R. D. Friedman), Capitalism and Freedom (1962), Preface (1982 edition), p. ix.
Moore, K. and Lewis, D., Foundations of Corporate Empire: Is History Repeating Itself? (Financial Times Prentice Hall, 2000)Google Scholar

Save book to Kindle

To save this book to your Kindle, first ensure [email protected] is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×