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
The Reasonable Investor and Disclosure
One of the primary tools used by the Opacity Protection Team for limiting disclosure is to hide behind the Supreme Court’s 1976... Read More
“The Big Lie is a Potent Tool”
Over the last several days, I have been sharing my thoughts (see here and here) on the Bank of England’s Andrew Haldane’s... Read More
Deception “has to happen in a financial crisis”
A few days ago, I wrote a post on the Bank of England’s Andrew Haldane confessing the central bank engaged in deception (some... Read More
Since when are Bribes not material?
The US Treasury released a report calling for the repeal of the section of the Dodd-Frank Act requiring companies disclose if they... Read More
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
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
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
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
Yellen delivers closing argument for breaking up the Fed
During the 2017 Jackson Hole symposium, Fed Chair Janet Yellen explained why breaking up the Fed and sending all of its supervision... Read More