The Empire Strikes Back

The role of financial institutions in the global crisis has led to a consensus that financial regulation must change. This column argues that the banking lobby, far from depleted, has struck back with a vengeance. It has managed to postpone the much needed regulation for a time when the need for it will be forgotten. 

Reason With The Messenger; Don’t Shoot Him: Value Accounting, Risk Management And Financial System Resilience

The U.S. Economic Emergency Act of 2008 allows the SEC to suspend mark-to-market accounting rules. But a blanket suspension would be counter-productive. Crises are times when uncertainty quickly turns to panic. Now is not the time to increase uncertainty by changing accounting standards. This article proposes an alternative: mark-to-funding. The Economic Emergency Act of 2008 […]