FINANCIAL CRISIS - IS THERE A DIFFERENT APPROACH IN THE USA AND EUROPE?

The recent financial crisis started a detailed discussion to find its basic causes as well as how to predict future crises and how to minimize their negative impacts. The United States has reacted to this crisis differently than Europe. Policy of deregulation, moral hazard of managers in large financial holding companies and too-big-to-fail problem are among the most often mentioned reasons for the financial crisis in the U.S.A. In this connection, the structure of the financial sector is discussed In EU countries, the institutional organization of regulation and supervision is a center of recommended reforms and international coordination of measures taken by national regulators and governments is underlined.