Katharina Pistor recently published a paper in the European Business Organization Law Review entitled, “Sovereign Wealth Funds, Banks and Governments in the Global Crisis: Towards a New Governance of Global Finance?”
It’s an interesting article. She argues that any financial crisis is ultimately the result of a governance failure. In turn, after a crisis, governments will seek to fill this governance deficit, which means that the fix is always backwards looking instead of forwards “thereby inadvertently sowing the seeds for the next governance failure”.
So, you might ask, what does the current governance framework look like? Pistor draws the following Figure to give you a taste for the growing complexity: