Literature Review Women on boards and in TMTS and firm performance 117 services providers primarily depend on their hu man capital Elayan Swales Maris Scott 1998 The banking industry is resource intensive and dependent on its employees qualification like al most no other sector Large scale staff reductions thus bear the risk of losing valuable human capital Third banks are subject to a high degree of regu lation In their function as financial intermediari es they are of crucial importance for the overall economic system Strict bank regulation thus aims at ensuring banking sector stability at all times Fourth the sector has undergone major crises that led to massive layoffs during the past decade The financial crisis that started in 2007 in the United States had a severe impact on the global finan cial sector Moreover it has shown that financial markets and institutions are closely linked together internationally and likewise to corporations ope rating in the real economy In the wake of the crisis bank regulation was further tightened 5 2 2 Effects of the global financial crisis on the banking sector The crisis adversely affected the financial con dition of banks involved at various levels of the market by inevitable considerable write downs and high bad debt provisions Marshall McColgan McLeish 2012 Financial institutions recorded enormous losses and faced immense cost pressure A large number of institutions was directly threate ned with insolvency Several banks went bankrupt the most famous case is certainly the collapse of US American investment bank Lehman Brothers in 2008 Central banks around the globe found them selves forced to supply the system with liquidity and made massive amounts of capital available in order to prevent the collapse of the financial sector Banks that were considered systematical ly relevant received government aid In return the states acquired a stake in the bank concerned e g AIG Allied Irish Banks Commerzbank Lloyds Banking Group UBS The financial services sec tor subsequently experienced a series of mergers and acquisitions M A Troubled banks were ab sorbed completely e g Bear Sterns acquired by J P Morgan in March 2008 Merrill Lynch acquired by Bank of America in September 2008 Sovereign Bancorp acquired by Santander in October 2008 or broken up and partly bought up by healthier institutions Mass layoffs took place throughout the global financial sector Due to the banks high complexity their business activities and close ties with each other and vari ous market players around the globe as well as in some cases simply their enormous size the crisis generated spill over effects to the broad financial and real economy and even whole states Already suffering from severe contagion effects from the US subprime crisis the euro zone ran into a sover eign debt crisis in late 2010 For the time being the euro crisis had its peak in 2012 After several policy measures were taken at the European and national levels investor confidence in euro area financial markets gradually returned from mid 2012 on ECB 2014 In response to the global financial crisis the Bank for International Settlements more precisely the Basel Committee on Banking Supervision BCBS had decided in December 2010 on enhanced fiscal governance and strengthened financial sec tor regulation The new regulations formalized in Basel III replacing the former Basel II provi sions aim at promoting a more resilient banking sector and at improving its ability to absorb shocks resulting from financial and economic stress thus limiting financial contagion effects on the real economy BCBS 2010 Basel III was revised in Ja nuary 2013 and October 2014 According to the Layoffs and shareholder wealth

Vorschau DIRK-Forschungsreihe Band 21 Workforce diversity and personal policies Seite 117
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