ABSTRACT Why did the popping of the housing bubble bring the financial system—rather than just the housing sector of the economy—to its knees? The answer lies in two methods by which banks had evaded regulatory capital requirements. First, they had temporarily placed assets—such as securitized mortgages—in off‐balance‐sheet entities, so that they did not have to hold significant capital buffers against them. Second, the capital regulations also allowed banks to reduce the amount of capital they held against assets that remained on (...) their balance sheets—if those assets took the form of AAA‐rated tranches of securitized mortgages. Thus, by repackaging mortgages into mortgage‐backed securities, whether held on or off their balance sheets, banks reduced the amount of capital required against their loans, increasing their ability to make loans many‐fold. The principal effect of this regulatory arbitrage, however, was to concentrate the risk of mortgage defaults in the banks and render them insolvent when the housing bubble popped. (shrink)

Scholarship on Xenophanes’s F1 has had two foci, one on the rules of the symposium and the other on the religious program posed at its close. Thus far, the two areas of focus have been treated as either separate issues or as the religious program proposed in the service of the sympotic objectives. Instead, I will argue that the sympotic norms Xenophanes espouses are in the service of the broader program of rational theology.

Religion has surprised the secular elites of North American and European societies. Not only has religion survived the treacherous passage from village to metropolis, from medieval superstition to modern science, and from state support (and coercion) to voluntary membership. Apparently, it has thrived and gained new sources of strength amidst these transformations. Far from being relegated to the proverbial ash‐heap of history, modern religions and the activist movements they generate find themselves positioned at the centre of modern debates – and (...) modern wars – over territory, political sovereignty, human rights, global and local economy, scientific research and popular culture. Among these activist movements, the most virulent and sustained are ‘fundamentalisms’ – increasingly sophisticated reactions against secular modernity that seek to fight back against the enemies of traditional religion by constructing religiously inspired and quintessentially modern alternatives to ‘godless’, idolatrous governments, institutions and political and cultural elites. (shrink)

Even though the link between perceived corporate social responsibility fit and corporate reputation has received much attention from scholars, this tradition has ignored that the underpinnings of this association vary depending on the particular characteristics of each industry under study. To delve into this matter, we investigate in the increasingly relevant context of controversial industries how PCSR-fit could enhance corporate reputation and which are the mediating mechanisms of this association. Our academic contribution is twofold. First, we find that controversial sectors (...) indeed can increase corporate reputation through CSR activities. However, we find that to achieve this goal, the nature of PCSR-fit should be different than what extant literature indicates, because companies in these settings should directly focus on avoiding or reducing their inherent controversial harm or impact. Second, we evidence that “CSR initiatives' legitimacy” and “situational skepticism” mediate the PCSR-fit and corporate reputation relationship in CIs. Therefore, we further unravel the underpinnings of this association to advance what we know on the matter and aid practitioners in this particular context. (shrink)