Acknowledgments
Introduction
Connectedness, contagion, and correlation : definitions and a review of the economic literature
The concept of connectedness
The concept and history of contagion
The concept of correlation
Connectedness in the crisis
Asset connectedness : Lehman and AIG
Liability connectedness : money market funds and tri-party repo market
The Dodd-Frank Act policies to address connectedness
Contagion
Contagion in the 2008 crisis : the run on the non-bank sector, "shadow banks"
The history of lender of last resort in the United States
Dodd-Frank restrictions on the lender of last resort power
Comparison of LLR powers of fed with Bank of England, European Central Bank, and Bank of Japan
Strengthening the LLR powers of the fed
Liability insurance and guarantees
Insuring money market funds
Ex-ante policies to avoid contagion : capital, liquidity, resolution, money market mutual fund reform, and limits on short-term funding
Capital requirements : Basel III framework
Liquidity requirements
Bank resolution procedures, contingent capital (CoCos), and bail-ins
Dodd-Frank orderly liquidation for non-bank SIFIs (including bank holding companies)
Living wills
Money market mutual fund reform
The dependence of the financial system on short-term funding
Government crowding out of private issuance of short-term debt
Public capital injections into insolvent financial institutions, i.e "bailouts"
Capital purchase program and other TARP support programs
Criticisms of bailouts generally
Specific criticism of tarp
Standing bailout programs
Conclusion
Notes
Index.