Washington Post (May 13, 2013)
“It’s been five years since the onset of the financial crisis — the rescue of Bear Stearns in March 2008 — and we still don’t know whether the financial system is safe.” Progress has clearly been made, but whether it’s sufficient or even the right sort remains very much to be seen. “Will Dodd-Frank save capitalism or suffocate it? It may be years before we know.”
New York Times (January 20)
“A detailed report put out by JPMorgan Chase last week on how it lost $6 billion from ill-fated trading in 2012 should be required reading for policy makers and financial executives. The 129-page document serves as a case study of how excessive complexity and poor oversight still threaten many parts of the financial system more than four years after the failure of Lehman Brothers.”
Tags: Complexity, Financial system, JPMorgan Chase, Lehman Brothers, London, Oversight, Trading loss
Institutional Investor (September Issue)
Is the financial system safer “after four years of summit meetings, regulatory conclaves, landmark legislation and detailed rule-writing—all of it aimed at ensuring that the financial system would never again crash the global economy or force taxpayers to underwrite costly bailouts?” Many things appear to have changed for the better and the regulatory stance is more aggressive, yet some of the changes may be releasing new risks that could surpass anything we’ve seen before. “The answer is not simple.”
Tags: Bailout, Economy, Financial system, Regulators, Risk, Safety, Taxpayers
The Washington Post (June 25)
What a difference a year makes. A year ago, the world questioned the U.S.-built financial architecture. China, especially, worried “it had made the wrong bet in relying on the United States to manage the global economic system.” But efforts to rescue the financial system worked. Now, “the United States is once again in the driver’s seat on global economic policy, with China emerging as a potent partner.”
Tags: China, Financial system, U.S.
