Financial Regulation
Advanced
Financial Contagion
The transmission of distress across institutions or markets through contractual exposures, funding withdrawals, asset sales, common portfolios, or information-based runs.
Why It Matters
Contagion analysis identifies channels through which individually rational defensive actions can destabilize the system and informs liquidity support, exposure limits, clearing, and resolution design.
Selected Literature
A short list of directly relevant archive entries.
1996
Advanced
Interbank Lending and Systemic Risk
Jean-Charles Rochet and Jean Tirole
Journal of Money, Credit and Banking
2000
Advanced
2008
Advanced
Related Cases
1996
Financial Law
United States v. Winstar Corp.
518 U.S. 839 (1996)
Government contractual commitments made during thrift supervisory mergers and later regulatory change.
2019
Corporate Law
Marchand v. Barnhill
212 A.3d 805 (Del. 2019)
Board-level compliance systems and oversight of a risk central to the company's single-line business.