ECB Discovers Macro-Prudential Regulation Doesn’t Work
One of the worst ideas to emerge from the Great Financial Crisis was macro-prudential regulation. Under macro-prudential regulation, regulators are suppose to... Read More
Newsflash: Macro Economists Did Not Prevent a Rerun of the Great Depression
After a decade of being derided for their failure to predict the financial crisis, macro economists want us to stop criticizing them... Read More
Wall Street and the Volcker Rule
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In a terrific article, Andrew Cockburn looks at how Wall Street influenced and still influences at both the legislative and regulatory level... Read More
What Happened to the Call for an End to the “Age of Irresponsibility”?
In a late September 2008 speech to the UN, Gordon Brown, then the UK’s prime minister, called for an end to the... Read More
Upton Sinclair was Right About MacroEconomists
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A decade after the beginning of the global financial crisis, I have come to realize the inability of macroeconomists to understand the... Read More
Regulators and Economists Continue to Block Transparency
McKinsey, the large international consulting firm, provide one of my favorite quotes to emerge from the financial crisis: After Lehman’s demise, participants... Read More
Banks’ Seduction of Their Regulators to Continue
For years, I have made the deliberately exaggerated statement: if banks disclosed their current exposure details, bank examiners would never have to... Read More
What is the Most Efficient Way to Regulate Wall Street?
According to the Federal Reserve’s Vice Chairman in charge of bank supervision, Efficiency has to be equally important with safety and soundness... Read More
Those Who Helped Break the Economy Cannot Fix It
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Over a decade after the beginning of the Great Financial Crisis, the global economy has still not found its footing and moved... Read More
Office of Financial Research: Doesn’t Even Work in Theory
Since it was created as part of the 2010 Dodd-Frank Act, the Office of Financial Research has shown why it shouldn’t exist... Read More
How Safe are Tim Geithner’s Central Counter-parties?
The Office of Financial Research recently published a working paper on the question of how safe are the derivative clearinghouses that regulators set... Read More
Shadow Banking Comes Under Fire
In a recently released report, the US Treasury confirmed its membership in the Opacity Protection Team and attacked the use of the term... Read More
Does Size Alone Matter?
The Office of Financial Research looked into the question of does bank size alone tell the whole story in measuring systemic importance.... Read More
Bank Regulatory Pendulum Swings Back To Light Touch
Barely a decade after the Great Financial Crisis began and already the argument is being made the post-crisis regulatory response went too... Read More
How Much Financial Regulation is Enough?
As we passed the tenth anniversary of the financial crisis, the discussion has turned to the appropriate level of regulation and supervision... Read More