The financial crisis has revealed many problems in the transparency and functioning of the financial sector. New debates on regulation and taxation of the financial sector have emerged as economists and policy makers were challenged to understand the sequence of events and the complex interactions between financial markets and the real economy-often not captured by economic models. This book opens a novel field of research by bringing together insights from public finance and banking, with the aim to better understand what had happened and how policy design of taxation and regulation could prevent a similar occurrence in the future.