Weekend Must ReadsPosted by on May 18, 2013
Wall Street Journal: How to Let Too-Big-To-Fail Banks Fail
Dodd-Frank does not end the threat of taxpayer bailouts. A reform to the bankruptcy code will do the trick.
There are three distinct phases of leadership when attempting to implement change: vision, structure and implementation. This same process can be applied to congressional leadership regarding U.S. financial reform.
Bloomberg: The Question the Fed Should Be Asking
Ed Koch, the late mayor of New York City, used to stop residents on the street and ask, “How am I doing?”
With next month marking the four-year anniversary of the end of the 2007-2009 recession, the longest and deepest since the Great Depression, it seemed like a good time to ask the same question -- of the Federal Reserve.
New York Times: Why Fund Managers May Be Right About the Fed
The economics world has been having a lot of fun with hedge fund managers.
After several such managers at a recent conference denounced the aggressive money-printing policies of Ben S. Bernanke, the Federal Reserve chairman, the economic blogosphere rose up to mock them.
As a response to the recent crisis, the DFA and G20 have created a new class of too-big-to-fail institutions. Constraining the risks these firms take must be an explicit goal of CFTC, SEC, and foreign rulemaking. On the other hand, finding ways to curtail the extent to which emerging rules actually constrain private firms' pursuit of profits is the goal of lobbying and other avoidance activities. Within and across borders, regulatory competition and the ability to persuade elected politicians to pressure regulators on their behalf helps the industry to bend the rules in their direction.