Header

UZH-Logo

Maintenance Infos

The Power of Banks and Governments


Reinke, Raphael (2016). The Power of Banks and Governments. Accounting, Economics, and Law, 6(1):57-63.

Abstract

This article examines Cornelia Woll’s book on the “power of collective inaction” in which she argues that banks could extract favorable bailouts in the recent global financial crisis by remaining collectively inactive. Collective inaction forces governments to bear the brunt of the crisis resolutions. While this book provides an illuminating account of banking bailouts in several countries, its argument neglects the power of governments and of individual banks. Governments did not have to wait for banks’ (in)action but could impose punitive conditions on banks. And the resistance by banks did not originate from an incapacity to act collectively but from deliberate actions by individual banks to obstruct government intrusion. Rather than <jats:italic>inaction</jats:italic> on the part of banks, these interactions between governments and banks involved deliberate <jats:italic>action</jats:italic> and their outcome depended on more conventional notions of state-business power relations.

Abstract

This article examines Cornelia Woll’s book on the “power of collective inaction” in which she argues that banks could extract favorable bailouts in the recent global financial crisis by remaining collectively inactive. Collective inaction forces governments to bear the brunt of the crisis resolutions. While this book provides an illuminating account of banking bailouts in several countries, its argument neglects the power of governments and of individual banks. Governments did not have to wait for banks’ (in)action but could impose punitive conditions on banks. And the resistance by banks did not originate from an incapacity to act collectively but from deliberate actions by individual banks to obstruct government intrusion. Rather than <jats:italic>inaction</jats:italic> on the part of banks, these interactions between governments and banks involved deliberate <jats:italic>action</jats:italic> and their outcome depended on more conventional notions of state-business power relations.

Statistics

Citations

Dimensions.ai Metrics

Altmetrics

Downloads

15 downloads since deposited on 23 Jul 2019
10 downloads since 12 months
Detailed statistics

Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:National licences > 142-005
Dewey Decimal Classification:Unspecified
Scopus Subject Areas:Social Sciences & Humanities > Accounting
Social Sciences & Humanities > Economics, Econometrics and Finance (miscellaneous)
Social Sciences & Humanities > Law
Language:English
Date:1 March 2016
Deposited On:23 Jul 2019 14:36
Last Modified:15 Apr 2021 15:07
Publisher:De Gruyter
ISSN:2152-2820
OA Status:Green
Publisher DOI:https://doi.org/10.1515/ael-2016-0003

Download

Green Open Access

Download PDF  'The Power of Banks and Governments'.
Preview
Content: Published Version
Language: English
Filetype: PDF (Nationallizenz 142-005)
Size: 1MB
View at publisher