Fabien Foureault - The strength of vulnerable positions

arcs:9233 - Analyse de réseaux pour les sciences sociales, October 30, 2018 - https://doi.org/10.46298/arcs.9233
The strength of vulnerable positionsArticle

Authors: Fabien Foureault 1

  • 1 Facultés des Lettres et des Géosciences Université de lausanne

This article addresses the structural power of banks by analyzing the market for Leveraged Buy-Outs (LBOs) in France during the 2000s. It attempts to operationalize the concept of financial hegemony in an original way, working from the idea of point-vulnerability in a graph, introducing a method that can be used to model a network according to this criteria (cohesive blocking). The analysis shows that banks oc-cupy not only the most central, but also the most vulnerable positions in the system compared with corporations and private equity firms. The crisis of 2007-2008 has enabled banks to impose their conditions and to firmly reinstate their hegemony which was somewhat contested during the bubble period. The structure that results from such an evo-lution has ambiguous implications for systemic risk.

Published on: October 30, 2018
Accepted on: October 30, 2018
Submitted on: November 6, 2017
Keywords: LBO,graph vulnerability,cohesive blocking,financial hegemony,Economic sociology,Sociologie économique,hégémonie financière,vulnérabilité d’un graphe,[SHS.SOCIO]Humanities and Social Sciences/Sociology


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