Securitization, Risk Transferring and Financial Instability: The Case of Spain

Carbó-Valverde, Santiago; Marqués-Ibáñez, David; Fernández, Francisco Rodríguez

doi:10.2139/ssrn.1909751

Cited by 13 publications

(13 citation statements)

References 40 publications

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“…Many developed as large full‐service institutions and responded to the decline in commissions gained from their traditional securities business by seeking new income sources. In particular, product and services diversification has led to greater (and possibly excessive) risk‐taking activities and exposure, including proprietary trading and dealing with complex financial securities (Altunbas, Gambacorta, & Marques‐Ibanez, ; Carbó‐Valverde, Hannan, & Rodriguez‐Fernandez, , ). This increase in investment banks’ risk exposure could have contributed significantly to the greater fragility of the banking and financial sector.…”

Section: Introductionmentioning

confidence: 99%

Competition and risk‐taking in investment banking

et al. 2019

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How does competition affect the investment banking business and the risks individual institutions are exposed to? Using a large sample of investment banks operating in seven developed economies over 1997–2014, we apply a panel VAR model to examine the relationships between competition and risk without assuming any a priori restrictions. Our main finding is that investment banks’ higher risk exposure, measured as a long‐term capital‐at‐risk and return volatility, was facilitated by greater competitive pressures for both boutique investment banks and full‐service investment banks. Overall, we find some evidence that more competition leads to more fragility before and during the recent financial crisis.

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Section: Introductionmentioning

confidence: 99%

Competition and risk‐taking in investment banking

et al. 2019

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“…This injection of liquidity was realized during the 2008–12 period by means of two large government rescue funds. Firstly, FAAF (Fondo de Adquisición de Activos Financieros—Acquisition Fund for Financial Assets) bought €19 billion in securities from 54 Spanish banks, thereby indirectly injecting public liquidity into the banking system (Carbó‐Valverde et al ., ). Secondly, FROB (Fondo de Reestructuración Ordenada Bancaria—Ordered Banking Restructuration Fund) boosted the issuance by banks of state‐guaranteed convertible bonds and acquisition of bank shares by the state.…”

Section: Contextualizing the Construction And Deconstruction Of The Smentioning

confidence: 97%

State‐Led Financial Regulation and Representations of Spatial Fixity: The Example of the Spanish Real Estate Sector

Yrigoy

2018

Int J Urban Regional Res

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This article offers a bottom‐up contribution to the fixity–motion literature. It aims to unravel the apparent contradiction of real estate spatial fixity in Spain, which is portrayed both as a barrier to accumulation and as a unique source of investment by different capitalist actors. Empirically, it describes the shifts in real estate ownership and changes in profit‐making strategies that have taken place across the real estate sector during the crisis years, and the role of the state in these shifts. The article asserts that the idea of spatial fixity representing a spatial barrier for accumulation does not necessarily apply in the Spanish case. It further claims that the tensions in capital circulation through real estate are not only to be found in the action of time, but in different state strategies pursued by various actors. The opposing representations of fixity are the result of state regulation of interest rates, taxation and risk weighting. The state also increasingly promotes land rents as a source of liquidity creation.

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“…Deregulation in the financial sector allowed easy entrance to homeownership. Simultaneously, abetted by laws allowing the securitization of mortgages (Carbo‐Valverde et al ., ), the banking industry targeted foreign‐born residents as the newest frontier for the spread of credit (see, for example, La Caixa, ). Calling cards and remittance services penetrated communities early on, establishing trust.…”

Section: Provincializing the Urbanmentioning

confidence: 99%

From Occupation to Recuperation: Property, Politics and Provincialization in Contemporary Madrid

Gonick

2016

Int J Urban Regional Res

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Recent debates have once again engaged with the substance and meaning of urban politics within our increasingly complex and startling contemporary landscapes. Yet these debates, while giving nods in the direction of feminist and postcolonial scholarship, largely work through traditional lenses of class, labor and the dynamic workings of neoliberal capitalism. In this article, I focus on spaces of difference and their engagement with the urban to demonstrate how politics ‘happens' in locations often left off the map of both scholarship and popular imaginaries, and, crucially, how those locations can, in fact, illuminate shifting political arrangements elided by other methodologies. By juxtaposing European okupa debates with postcolonial discussions of urban informality, I trace what I argue is a new iteration of squatting within a city both ravaged by edicts of neoliberal austerity and buoyed by the efflorescence of social movements and alternative political projects. I then explicate the role of property in constituting the urban within Spain, using the concept of ‘provincialization'. In doing so, I think relationally between systems of property and emergent forms of insurgency to argue that we are witnessing an anticipatory politics that fundamentally challenges hegemonic relationships between everyday citizens and regimes of property ownership.

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Securitization, Risk Transferring and Financial Instability: The Case of Spain

Cited by 13 publications

References 40 publications

Competition and risk‐taking in investment banking

Competition and risk‐taking in investment banking

State‐Led Financial Regulation and Representations of Spatial Fixity: The Example of the Spanish Real Estate Sector

From Occupation to Recuperation: Property, Politics and Provincialization in Contemporary Madrid

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