Mourlon-Druol, E. (2015) 'Trust is good, control is better': the 1974 Herstatt-Bank crisis and its implications for international regulatory reform. Business History, 57(2), pp. 311-334. (doi: 10.1080/00076791.2014.950956)
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Abstract
With its international supervisory and regulatory implications, the failure of Bankhaus Herstatt is one of the landmarks of post-war financial history. This article offers the first comprehensive historical account of the Herstatt crisis, and contributes to the wider discussions on international supervisory and regulatory reform since the mid-1970s, including regulatory capture, markets' self-regulation and resolution of failed banks. In doing so, it first argues that contrary to a widely held view, the German authorities received early and repeated warnings about Herstatt's dealings but this involved only limited and ineffective regulatory/supervisory responses, then it turns to the actual collapse of the bank in June 1974, and finally explores the wider regulatory issues raised by the Herstatt case.
| Item Type: | Articles |
|---|---|
| Status: | Published |
| Refereed: | Yes |
| Glasgow Author(s) Enlighten ID: | Mourlon-Druol, Professor Emmanuel |
| Authors: | Mourlon-Druol, E. |
| College/School: | College of Social Sciences > Adam Smith Business School > Management |
| Journal Name: | Business History |
| Publisher: | Taylor and Francis |
| ISSN: | 0007-6791 |
| ISSN (Online): | 1743-7938 |
| Copyright Holders: | Copyright © 2015 The Authors |
| First Published: | First published in Business History 57(2):311-334 |
| Publisher Policy: | Reproduced under a Creative Commons License |
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