Economists, financial markets and theory-induced blindness
In Transparency Games, I get to talk about how economists, both academic and those working for the financial regulators, have theory-induced blindness when... Read More
Dodd-Frank Act used so Federal Reserve becomes national insurance regulator
For those of you who may have missed it, the Federal Reserve is using the Financial Stability Oversight Council portion of the... Read More
Economists and the Queen’s Question
In Transparency Games, I get to discuss how the economics profession reacted to the Queen of England asking why, if everything was so... Read More
Overhauling financial supervisory framework
Paul Volcker spelled out the need for reforming our financial supervisory framework. Talking about the need to reorganize and consolidate the financial... Read More
Regulators worry about how to regulate shadow banking
One of the reasons our financial system is not designed to be dependent on regulators to control systemic risk is the sheer... Read More
Regulatory supervision of financial benchmarks insufficient
Reuters reports EU lawmakers have backed new rules to stop bankers rigging financial market benchmarks. In an effort to boost confidence in... Read More
JPMorgan and asset manager conflicts of interest
Bloomberg reports JPMorgan asset management executives have been questioned by the SEC about their undisclosed policy to steer clients to in-house products.... Read More
Martin Fridson on transparency
In a Bloomberg article, money manager Martin Fridson articulated why the buy-side needs the Transparency Label Initiative™. Describing the impact of investors... Read More
BoE’s Haldane on complexity and the need for data
In his speech, on microscopes and telescopes, the Bank of England’s chief economist, Andrew Haldane, talked extensively about the need for data so... Read More
How best to address financial cycles
In a recent quarterly review, the Bank for International settlements observed: How best to address financial cycles is a broader policy question... Read More
Value of opacity to bankers: $100 billion per year
In a very interesting article, David Dayen looks at the incentive bankers had to hide behind the opacity of the securities they... Read More
Martin Wolf debunks myth we avoided a second Great Depression
One of the myths that global policymakers and financial regulators have tried to spread is their response to the 2007/2008 financial crisis... Read More
Michael Lewis experiences pushback from Wall Street
In his Vanity Fair article on Flash Boys, Michael Lewis describes the same pushback from Wall Street that I have experienced. In both... Read More
Gaming the stress tests
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The Fed released the results of its annual stress tests and the question was why were JPMorgan and Goldman so close to... Read More
Stress tests create moral hazard
One of the signature regulatory innovations to emerge since the financial crisis began in August 2007 is the annual stress test. Conventional... Read More