I. Ben-David, F. Franzoni, R. Moussawi, and J. Sedunov, “The Granular Nature of Large Institutional Investors”, NBER Working Paper No. 22247, May 2016. See Manconi A., Massa M. and Yasuda A., “The role of institutional investors in propagating the crisis of 2007–2008”, Journal of Financial Economics 104.
More generally, and this a third important lesson learnt from the ongoing financial crisis, the effective safeguarding of financial stability – both in preventing and in managing a financial crisis – requires parallel and complementary action by central banks and supervisors, and an enhanced cooperation and exchange of information between them.