The Myth of Central Bank Infallibility
Since the idea of macro-prudential regulation was first raised, I have pointed out there is no reason to expect it to work.... Read More
Transparency Continues to be Missing from Crisis Response
The ECB’s Draghi gave a speech in which he extolled the achievements of regulatory reform since the beginning of the Great Financial... Read More
Rating Firms and the Information Matrix
The Information Matrix can be used to examine the rating firms’ business model and the impact of the Transparency Label Initiative on... Read More
Transparency is a 0/1 variable
Recently, I was asked why the Transparency Label Initiative treats transparency as a 0/1 variable. The reason is either there is adequate... Read More
Opacity as an Asset Class
Yes, you read that right. Opaque securities should be considered an asset class. But isn’t the Transparency Label Initiative all about dividing... Read More
Bank Leverage: The Great Divide
Since the Great Financial Crisis began on August 9, 2007, I have said the focus on bank capital in the absence of... Read More
BoE lists reasons you are suppose to think financial system is safer
As we approach the tenth anniversary of the financial crisis, the Bank of England published the reasons why you are suppose to... Read More
Gaming the Rules
Danièle Nouy, Chair of the Supervisory Board of the ECB, gave a speech in which she laid out why bank regulators and... Read More
Did Lack of Transparency Cause the Financial Crisis?
The lack of transparency in the global financial system was and still is the necessary condition for a financial crisis to occur. By... Read More
Are banks still an accident waiting to happen?
The results of the bank stress tests are in and once again virtually every single bank passed. Central bank regulators are running... Read More
Secret to How Wall Street Makes Money Revealed
In 2010, I wrote a Fortune column explaining how Wall Street made money on subprime mortgage-backed securities by exploiting its access to... Read More
Stanley Fischer’s Last Great Economics Lesson
With the announcement of his retirement as Fed Vice Chairman, I thought it would be interesting to browse through a few recent... Read More
Role of Financial Regulators in an Agent-based System
There are a number of reason I wish the Information Matrix was taught in Econ 101. Close to the top of the... Read More
Cochrane Responds to Yellen’s Jackson Hole Speech
Periodically, I stumble across a post that I recommend reading. John Cochrane’s response to Janet Yellen’s Jackson Hole speech is one of... Read More
Yellen confirms Too Big to Fail alive and well
In her 2017 Jackson Hole speech, Fed Chair Janet Yellen confirmed Too Big to Fail is alive and well. She observed: Finally,... Read More