Session 3

Government in Corporate Governance

Another consequence of the economic crisis is that governments have ended up as holders of substantial equity ownership in many companies, not only in the financial sector but also in other major industries.

This raises crucial questions regarding the conditions of government take-over of companies too systemic to fail, how governments should exercise their ownership rights and the long-term implications of government intervention for competition policy and the functioning of the free market economy.

The session opened with presentations by Xavier Friexas, Professor of Banking and Finance at the Universitat Pompeu Fabra, Barcelona and by Humbert Drabbe, Director State Aids at DG Competition, the European Commission. This was followed by a panel Discussion, which brought together representatives of the financial sector, institutional investors, finance market regulators and academic researchers, moderated by Marco Becht of the ECGI.

Presentations: Xavier Freixas, Humbert Drabbe