Dealer banks--that is, large banks that deal in securities and derivatives, such as J. P. Morgan and Goldman Sachs--are of a size and complexity that sharply distinguish them from typical commercial ...banks. When they fail, as we saw in the global financial crisis, they pose significant risks to our financial system and the world economy.How Big Banks Fail and What to Do about Itexamines how these banks collapse and how we can prevent the need to bail them out.
In sharp, clinical detail, Darrell Duffie walks readers step-by-step through the mechanics of large-bank failures. He identifies where the cracks first appear when a dealer bank is weakened by severe trading losses, and demonstrates how the bank's relationships with its customers and business partners abruptly change when its solvency is threatened. As others seek to reduce their exposure to the dealer bank, the bank is forced to signal its strength by using up its slim stock of remaining liquid capital. Duffie shows how the key mechanisms in a dealer bank's collapse--such as Lehman Brothers' failure in 2008--derive from special institutional frameworks and regulations that influence the flight of short-term secured creditors, hedge-fund clients, derivatives counterparties, and most devastatingly, the loss of clearing and settlement services.
How Big Banks Fail and What to Do about Itreveals why today's regulatory and institutional frameworks for mitigating large-bank failures don't address the special risks to our financial system that are posed by dealer banks, and outlines the improvements in regulations and market institutions that are needed to address these systemic risks.
There are different operating definitions for acute-on-chronic liver failure (ACLF) in different geographic regions. Consortia in Western countries have developed definitions that apply to patients ...with cirrhosis, while consortia in Asia have developed definitions that apply to patients with chronic liver diseases with or without cirrhosis. Investigators of the Chinese and Western Consortia believe that ACLF can be precipitated by acute insults that are intrahepatic (e.g. alcoholic hepatitis) or extrahepatic (e.g. bacterial infection, gastrointestinal haemorrhage), and that extrahepatic organ system failures can be used to define ACLF. In contrast, the Asia Pacific consortium believe that ACLF is only defined by an acute onset of liver failure in response to an acute hepatic insult. Of note, although ACLF has received different operating definitions, every definition recognises that ACLF is a distinct clinical entity. This article provides an updated overview of the distinctive features of ACLF according to the definitions used to characterise it. In addition, we discuss future directions for research aimed at identifying the hallmarks of ACLF.
•Identification of mode of failure of beam-column joints through machine learning techniques.•Probabilistic models to capture the type of failure and shear strength of beam-column joints.•Sensitivity ...of input variables to joint shear strength.•Comparison of various machine learning techniques to estimate the shear strength of beam-column joints.
Beam-column joints are one of critical components that control the oveerall performance of reinforced concrete building frames under seismic loadings. To identify the response mechanism, including the classification of failure mode and the prediction of associated shear strength, of beam-column joints, this paper introduces the application of machine learning techniques. The efficiency of various machine learning techniques is evaluated using extensive experimental data from 536 experimental tests, all of which exhibited either non-ductile joint shear failure prior to beam yielding or ductile joint shear failure after beam yielding. It has been seen from the comparison that lasso regression has a better efficiency and reasonable accuracy in the classification and prediction. The suggested formulations as a function of influential input variables can be easily used by structural engineers to provide an optimal rehabilitation strategy for existing buildings and to design new structures.
To increase the recovery rate of coal mining operations, the gob-side entry retained (GER) technique has been extensively implemented in China. However, due to the mining-induced macro-cracks in the ...immediate roof above the roadside backfill area (RBA) under cyclic loading, the roof failure may occur and threaten the safety of GER. Mechanical characterization of rocks is crucial for understanding of the failure mechanism of this roof failure phenomenon. Based on the theoretical analysis and triaxial unloading confining pressure tests with cyclic loading on sandy mudstone, the strain energy evolution and conversion were studied. Results indicate that the total strain energy, elastic strain energy, and plastic-damage strain energy can be divided into various stages during the test. An index was introduced to describe the energy conversation and deformation of damaged rock specimen during the test, which can be expressed as the ratio of the plastic-damage strain energy to the total strain energy. This index increases gradually from the peak point to the post-peak unloading point. Then, it increases sharply from the first axial stress level to the first failure state, and finally decreases from the second axial stress level to the second failure state. Failure patterns of the damaged rock suggest that the macro-shear failure bands are mainly caused by the axial compression, whereas the micro-crack propagation is due to the circumferential expansion. The findings on the strain energy evolution and conversion of the immediate roof under the loading and unloading conditions of GER provides an insightful method to evaluate the roof stability above RBA, which also sheds lights on the GER design in coal mining to prevent the roof failure above RBA.
Too big to fail Stern, Gary H; Feldman, Ron J; Volcker, Paul A
2004., 2004
eBook
The potential failure of a large bank presents vexing questions for policymakers. It poses significant risks to other financial institutions, to the financial system as a whole, and possibly to the ...economic and social order. Because of such fears, policymakers in many countries--developed and less developed, democratic and autocratic--respond by protecting bank creditors from all or some of the losses they otherwise would face. Failing banks are labeled "too big to fail" (or TBTF). This important new book examines the issues surrounding TBTF, explaining why it is a problem and discussing ways of dealing with it more effectively. Gary Stern and Ron Feldman, officers with the Federal Reserve, warn that not enough has been done to reduce creditors' expectations of TBTF protection. Many of the existing pledges and policies meant to convince creditors that they will bear market losses when large banks fail are not credible, resulting in significant net costs to the economy. The authors recommend that policymakers enact a series of reforms to reduce expectations of bailouts when large banks fail.
With fast growing demand for modern transportation, more shallow tunnels are being constructed and planned. Understanding the deformation and failure mechanism of a shallow underground tunnel has ...been a topic of research. The influences of the surrounding material (rock and soil) strengths and buried depths on the deformation and failure mechanism are investigated through the transparent soil model test technique and PFC3D numerical simulation in this study. It can be observed from model tests that the failure mode of test 1 (relative density of 30%, buried depth of 60 mm) is similar with that of test 2 (relative density of 70%, buried depth of 60 mm), both showing the funnel shape. The difference lies in that the tunnel stability in test 1 is lower. On the other hand, tests 2 and 3 (relative density of 70%, buried depth of 120 mm) are of different failure shapes as the latter displays a chimney shape. PFC3D simulation is carried out to numerically examine the failure modes under different testing conditions. The stress field and the displacement field derived from the numerical results can help to interpret the tunnel failure mechanism. In addition, it is obvious from this study that the Peck formula (1969) is less applicable for the surrounding materials with low strength. Therefore, it should be amended according to the surrounding materials, especially for the granular soils.
This paper describes both appropriate and inappropriate practices of filtering field failure data (FFD) prior to using the resulting failure count from the failure data to estimate failure rates. The ...underlying causes of inappropriate (extreme) filtering of FFD are examined, and the consequences (poor process safety) are discussed. An example is presented illustrating the benefits of using all real failures discovered in the field in the estimation of failure rates based on FFD.
The massive power flow transferring triggers the node overload cascade, which further activates the protection system hidden failures. In this study, we propose a cascading failure model based on ...complex network theory by combining the node overload failures and hidden failures of transmission lines in blackouts together. The model concerns the electrical characteristics, which has not been involved in the existed cascading failure model when modelling node loads. The cascading failure simulations on the 500 kV Center China power grid and the IEEE-300-bus test system demonstrate that the proposed cascading failure model with node load built on electrical characteristics can bring better network invulnerability than the model with that constructed on pure structure topology. Meanwhile, the proposed model can better exhibit the negative aspects of hidden failures in the blackouts. The deliberate attacks based on high-risk nodes can decrease the invulnerability of power grids more seriously compared with those based on high-degree and high-load nodes. The results provide a new way to analyse the power grid cascading failure mechanism based on the complex network theory.
•Failure mechanism of thread-fixed one-side bolted T-stubs under tension was investigated through a finite element model.•Studied parameters included the bolt diameter, the bolt spacing and the ...T-stub plate strength.•Modified design equations integrating the potential hole thread failure were proposed.•Analysis results showed that the thread hole could provide enough clamping force to fix the high strength bolt.
The failure mechanism of thread-fixed one-side bolted T-stubs under tension was investigated by a finite element model to provide basic knowledge for its potential application in bolted beam-column endplate connection. The finite element model was verified through experimental results by considering four possible reference issues: the T-stub deformation, the force–displacement curve, the failure mode and the yield strength. Studied parameters included the bolt diameter (d), the bolt spacing (s) and the T-stub plate strength (fy). Based on numbers of plastic hinges in the T-stub flange, the failure modes were divided into three categories: Mode 1, complete flange yielding; Mode 2, flange yielding accompanied by bolt failure or hole thread failure; and Mode 3, bolt failure or hole thread failure. Furthermore, modified design equations integrating the potential hole thread failure were proposed to analyze the failure mode and the yield strength of the T-stub connection. Theoretical and numerical analyses showed that the thread hole could provide enough clamping force to fix the high strength bolt, which assured that the one-side bolted T-stub connection would not fail caused by pre-mature thread failure.
PDF
