Stock exchange virtualisation and the decline of second-tier financial centres--the cases of Amsterdam and Frankfurt

Engelen, Ewald; Grote, Michael H.

doi:10.1093/jeg/lbp027

Cited by 66 publications

(54 citation statements)

References 45 publications

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“…It is important to know that these rating agencies have not felt a need to establish offices in the Netherlands but conduct their assessment of Dutch securitizations from their offices in London (combined with brief visits to the structuring bank). This is in line with the observation that the Amsterdam financial centre in the 21st century is largely a satellite of the City of London (Engelen and Grote, 2009). …”

Section: Delegated Risk Assessmentsupporting

confidence: 89%

‘Cognitive Closure’ in the Netherlands: Mortgage Securitization in a Hybrid European Political Economy

Aalbers¹,

Engelen²,

Glasmacher³

2011

Environ Plan A

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There is a strong case that mortgage-backed securities were at the root of the 2007-09 fmancial crisis. Even though geographers have convincingly demonstrated that loan origination is strongly locally rooted and that the fallout from the subprime mortgage crisis clearly had spatially circumscribed effects, securitization is still generally perceived as a universal, private, and purely market-based financial technique. In this paper we use a description of the securitization chain in the Netherlands to contest these perceptions. Building on and adding to Thomas Wainwright's analysis of securitization in the UK, we first argue that securitization in the Netherlands has taken a form which reflects Dutch corporatist institutional arrangements, implying that both geography and states do matter for the supposedly aspatial process of securitization. Second, we argue that the Dutch state has been very much implicated in the construction of the securitization market in the Netherlands. Third, we suggest that this can best be seen as an effect of 'cognitive closure' rather than of 'regulatory capture': that is, Dutch pro-banking regulation is not so much an effect of bankers hijacking regulators but, rather, more the result of bankers seducing regulators with their stories. This paper is a detailed case study of the workings of financialization and adds to the growing body of work which seeks to analyze the different 'varieties of financialization' and the variegated geographies of the financial crisis.

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Section: Delegated Risk Assessmentsupporting

confidence: 89%

‘Cognitive Closure’ in the Netherlands: Mortgage Securitization in a Hybrid European Political Economy

Aalbers¹,

Engelen²,

Glasmacher³

2011

Environ Plan A

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“…In fact, the relative decline of the financial center of Frankfurt has more to do with a return of financial service providers to their economic "hinterland"-the German region-than with the transnationalizing effects of the rise of information and computer technologies on trading patterns that are visible in Amsterdam (see Grote 2008;Engelen 2007;Engelen and Grote 2009). Thus, there is still a stronger spatial connection between the origins of a financial asset and the network of activities built up around its placement and management.…”

Section: Economic Geographymentioning

confidence: 99%

Geographies of Financialization in Disarray: The Dutch Case in Comparative Perspective

2009

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The securitization crisis that started in mid-2007 has demonstrated that we are indeed living in a "global financial village" and are all subject to the vagaries of financialization. Nevertheless, the fallout from the credit crisis has not been homogeneous across space. That some localities were hit harder than others suggests that there are distinct geographies of financialization. Combining insights from the "varieties of capitalism" literature with those from the literature on "financialization studies," the article offers a first take on what may explain these different geographies on the basis of an informal comparison of the trajectories of financialization and their political repercussions in the United States, Germany, and the Netherlands. The article ends with some reflections on how economic geography could be enriched by combining comparative studies on institutionalism and financialization, while its distinct research focus-detailed spatial analysis endowed with a well-developed sensitivity for geographic variegation-may help overcome the methodological nationalism of much comparative institutionalism. Copyright (c) 2010 Clark University.

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“…In this context, one could also account for the internationalization of the banking sector and how that has affected the evolution of the Amsterdam banking cluster (see, e.g., Engelen and Grote 2009). First, there is a need to replicate this study in other countries, especially where banking is spatially concentrated, like the United States (New York), the United Kingdom (London), and Germany (Frankfurt).…”

Section: Resultsmentioning

confidence: 99%

Merger andAcquisition Activity as Driver of Spatial Clustering: The Spatial Evolution of theDutch Banking Industry, 1850–1993

Boschma

Hartog

2014

Economic Geography

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Key words: industrial dynamics cluster mergers and acquisitions banking sector evolutionary economic geography JEL codes: o18 r00 r11abstract This article investigates the extent to which merger and acquisition (M&A) activity contributed to the spatial clustering of the Dutch banking industry in Amsterdam. This analysis is based on a unique database of all banks in the Netherlands that existed in the period 1850-1993. We found that spatial clustering of the Dutch banking industry was not driven by the fact that banks performed better in the Amsterdam region: being located in Amsterdam decreased rather than increased the survival chances of banks. However, banks in Amsterdam were disproportionally active in acquiring other banks outside Amsterdam. Experience in M&As accumulated mainly in the Amsterdam region, which in turn had a positive impact on the survival chances of banks located there. Our findings suggest that M&A activity was a driving force behind the spatial clustering of the Dutch banking industry between 1850 and 1993. 247 ECONOMIC GEOGRAPHY90 (3):247-266.

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Stock exchange virtualisation and the decline of second-tier financial centres--the cases of Amsterdam and Frankfurt

Cited by 66 publications

References 45 publications

‘Cognitive Closure’ in the Netherlands: Mortgage Securitization in a Hybrid European Political Economy

‘Cognitive Closure’ in the Netherlands: Mortgage Securitization in a Hybrid European Political Economy

Geographies of Financialization in Disarray: The Dutch Case in Comparative Perspective

Merger andAcquisition Activity as Driver of Spatial Clustering: The Spatial Evolution of theDutch Banking Industry, 1850–1993

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