# Stability link

- Canonical URL: https://www.gerhardmerk.de/stability-link-2
- Post ID: 590406
- Modified: 2023-07-25T21:12:07+00:00
- Language: en

## Definition

A term that emerged after 2000 for the (empirical) fact that, with strict, persistent monitoring of banks by the supervisory authorities, a complete financial collapse of an economy remains virtually impossible. In the USA, this insight was incorporated into the Sarbanes-Oxley Act in 2002. - Of course, this presupposes first and foremost that institutions also report their risks on their balance sheets and do not transfer them to off-balance sheet special purpose vehicles, as became apparent in the course of the subprime crisis. - See Financial Alchemy, Securitization Structure. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

- Generator: Merk Knowledge 1.1.1