Posts Tagged ‘regulation’

Regulatory Reform For Too Big To Fail Institutions

Tyler Cowen has a piece in the NYT today arguing that regulatory reform won’t work unless creditors are exposed to the risk of some loss in the event of counterparty failure. Mr. Cowen suggests that the simple solution of letting creditors make their case in bankruptcy court isn’t workable because of the cost to the […]

Geithner’s New Regulations

Treasury Secretary Geithner fired his first shots in the re-regulation war. He outlined four areas which the administration considers worthy of attention — Systemic risk (the financial institutions), protecting the consumer, consolidation of the regulatory structure and international cooperation. His testimony today focused on the first. Here is the outline for his strategy to address […]

Bernanke On Regulation

Fed Chairman Bernanke delivered a speech to the Council on Foreign relations. In it he touched on “too big to fail”, the causes of the current financial crisis and possible future regulatory steps. “…Like water seeking its level, saving flowed from where it was abundant to where it was deficient, with the result that the […]

A Few Things To Think About Before We Reregulate

Calls for new regulations for financial industry participants are in the echoing about and are likely to increase in volume over the next couple of months. The subject is expected to be at the top of the agenda for the April meeting of the G-20. An article in the WSJ on Monday set the tone: […]

Another View Of Regulation

In addition to the post below, here is another view of regulation from the WSJ today. The Journal has consistently held that regulation is not the be all and end all for preventing the types of problems we have recently encountered. It’s a position that I’m not unsympathetic to. Their chronicle of the resources that […]

Thoughts On Regulation

I wrote this some time ago and never got around to publishing it. I was never quite satisfied with what I wrote and I’m still not, but in light of the Madoff Affair, I decided to throw it on the blog. Everyone else has had a shot at trying to pin the blame for the […]

Securitization And Bank Regulation

Felix Salmon had a gem of a post at Portfolio.com the other day. In it he talks about low-information assets and high-information assets. The former being things like bank deposits and money market funds and the latter being stocks and CDO’s. One of the points of the post was that the transformation of low-information assets […]