金融海嘯後金融集團之監理 Supervision of Financial Conglomerates: New Approaches in the Aftermath of the Financial Crisis 王文宇 台灣大學法律學院教授兼 企業與金融法研究中心主任

Causes of Financial Crisis U.S. Obsession with Housing Creation Unnaturally Low Interest Rates Deregulation of Financial and Capital Markets A Blind Eye to Correlation Risks to the Economy Financial Engineering Accounting Doctrine, Rating Agency Problems Lastly, Greed

The Focus: Large and Complex Financial Institutions The Factor that Pulled Together Elements of All of the Above Causes A Disorderly Liquidation Would Have a Disastrous Effects on the Financial System and the Whole Economy

Reactive Strategies of the U.S. Too Big to Fail Mentality The Arbitrary Bailouts Constructive Ambiguities –Stimulus, Liquidity Credit Facilities, Capital Enhancement Different Bailout Models –Rescue and Consolidation (e.g., Bear Stearn) –Rescue and Downside (e.g., Citigroup) –Rescue and Disaggregation (e.g., AIG)

The Call for a New Regulatory Approach Tools of Financial Regulation –Capital Requirements (e.g., Basel Rules) –Liquidity Restrictions –Activity Restrictions –Transparency –Eliminating Perverse Compensation Scheme –Continuous Monitoring by On-site Examiners

Defining a Financial Conglomerate Total Assets Size of Off-balance Sheet Exposures Asset under Management Activity in Payment System Securities Borrowed and Lent Merchant Banking Activities (e.g., Securities Underwriting)

Regulatory Concerns Excessive Leveraging Systemic Risk Transparency Issue Conflicts of Interest Chain Reaction of Group Companies

Situation in Taiwan How Many Financial Conglomerates do We Have? (All the 14 Financial Holding Companies?) How About State-Controlled Banks or Financial Institutions? Are They Too Safe to Fail? The Past Experience: Even Failures of Medium-sized Banks can be Contagious

Fundamental Problems in Taiwan Overbanking Calls for Effective Exit Strategies The Need for Sufficient Bailout Funds Same Business, Same Rights, Same Rules Improved Corporate Governance, Particularly for Family-controlled Conglomerates Too Big to Fail or Too Safe to Fail? How to Balance Operational Efficiency, Tolerance for Risk, and Bank Failure?

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