Luxembourg School of Finance: Government Bank Rescues

Thursday, 28 January 2010 | University News

The Luxembourg School of Finance in partnership with the ABBL and the "Banque centrale du Luxembourg" is pleased to organise the conference "Government Bank Rescues: New Ideas for Resolving an Old Dilemma" for professionals of the Luxembourg Financial Centre. Journalists are kindly invited to attend the event.

Date and Time: Thursday, 28^th January 2010, 18:30-20:00 followed by a cocktail reception.
Venue : Chambre de Commerce du Luxembourg, 7, rue Alcide de Gasperi, Luxembourg, Tel: 42 39 39 1.

Description

Government bail-outs of banks in the recent financial crisis have attracted much political and popular resentment. Issues of moral hazard with respect to risk-taking and bankers' compensation have generated much controversy and discussion. So today policy-makers are searching for alternatives. Stricter capital requirements are a classic approach, but not without negative spillover effects. In particular, procyclicality and feedback effects are possible, resulting from premature sale of assets or equity issuances as banks struggle to meet these requirements in economic downturns. Can this dilemma be resolved? Professors Theo Vermaelen (INSEAD) and Christian Wolff (LSF) have proposed a policy mechanism that would resolve this dilemma and contribute to the toolkit available to regulators and policy-makers

Programme:

18:00 Registration
18:30 André Prüm, Dean, Faculty of Law, Economics and Finance, University of Luxembourg
Conference Opening
18:40 Yves Mersch, Governor, Banque centrale du Luxembourg
Government Bank Rescues
19:00 Theo Vermaelen, Professor, INSEAD and LSF
An innovative approach to government rescues of banks: how to reconcile the situation of shareholders with the interests of the taxpayer.
19:30 Panel Discussion with
Yves Mersch, Governor, Banque centrale du Luxembourg
Georges Hübner, Professor, Université de Liège
Theo Vermaelen, Professor, INSEAD; visiting Professor, LSF
Christian Wolff, Professor and Director, LSF
Moderator: Julian Presber, LSF
20:00 Cocktail Reception

Please register in advance at : lsf-events@uni.lu and indicate your name and institution. For further information, please contact: Ms Deborah Marx +352 46 66 44 6873

For interviews, please contact:  Britta Schlüter
Responsable du Service de Communication
UNIVERSITÉ DU LUXEMBOURG
CAMPUS LIMPERTSBERG
162a, avenue de la Faïencerie
L-1511 Luxembourg
T +352 46 66 44 6563
F +352 46 66 44 6561
britta.schlueter@uni.lu   http://www.uni.lu/