By Steve Denning, Contributor “The Debate on Bank Size Is Over,” writes Simon Johnson in his New York Times column. “The decision to cap the size of the largest banks has been made. All that remains is to work out the details.” …read more
Source: FULL ARTICLE at Forbes Latest
We can’t solve problems by using the same kind of thinking we used when we created them. Albert Einstein At a news conference last Wednesday, Ben Bernanke, the chairman of the Federal Reserve, conceded that the problem of too-big-to-fail is “still here”. If new rules and international cooperation did not solve it, he said, “additional steps” will be needed. Chairman Bernanke didn’t say what “additional steps” he has in mind. Since neither Dodd-Frank nor conclaves of central bankers are getting the job done, let’s give the chairman some help, by pointing out six things the Fed must do. Abandon nostalgia for a world that no longer exists Let’s start with some popular non-starters. Simon Johnson, former chief economist of the International Monetary Fund, and a Professor of Entrepreneurship at the M.I.T. Sloan School of Management, writes in the New York Times writes that “the clearest possible statement of how to think about the modern financial system – and make it less risky” lies in a speech by Richard Fisher, president of the Federal Reserve Bank of Dallas, entitled “Ending Too Big To Fail.” …read more
Source: FULL ARTICLE at Forbes Latest
