Stanford professor Anat Admati discusses her new paper, in which she explains how a mix of distorted incentives, ignorance, confusion, and lack of accountability contributes to the persistence of a dangerous and poorly regulated financial system.
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The entire board of Wells Fargo, not just the CEO, needs to be replaced.
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Eric Ben-Artzi, the former Deutsche Bank risk officer turned whistleblower who rejected a multi-million dollar award from the SEC, will give a talk at the Stigler Center on Thursday via video conference.
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A former investment banker examines the culture that incentivizes people in the industry to put their interests before their clients’. Part three in a series of columns by anonymous sources that reveal how industries work from within.
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If the criticisms against Wall Street had been accurate, the U.S. corporate sector today would be ailing. Instead, corporate profits are at historical highs both absolutely and relative to GDP.
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Bank executives frequently proclaim that Wall Street is vital to the nation’s economy and performs socially valuable services by raising capital, providing liquidity to investors, and ensuring that securities are priced accurately so that money flows to where it will be most productive. There’s just one problem: the Wall Street mantra isn’t true.
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New study estimates that the total costs of America’s flawed financial system–rents, misallocation costs, and the costs of the 2008 crisis–will add up to an estimated $22.7 trillion between 1990 and 2023.
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In order to get optimal regulation in the financial world, says Alan Blinder, the former Vice Chair of the Federal Reserve, one should seek to over-regulate.
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India and Israel show that fighting crony capitalism in countries where a small group of people has huge political and financial influence is sometimes a role only people with strong backing from outside the country can take on.
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Former Fed chairman Ben Bernanke: “Size is not the only relevant attribute of banks.”
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