A Statement by The Financial Economists Roundtable drafted by a committee, chaired by Edward Kane and Richard Herring including Edward Altman and Charles Goodhart

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During the last few decades, securitization has become a primary channel for enlarging financial markets and transferring credit risk from lenders to investors.  Outstanding issues of privately securitized assets peaked worldwide at just under $12 trillion in 2008.[1]

Lessons from the Crisis for Financial Regulation: What we need and what we do not need

In its broad outlines the current financial crisis was foreseen, though not in its specific detail. Virtually all of the major central banks and international financial institutions had been warning about the underpricing of risk and excessive leveraging by 2006/7. the BIS had been warning about it for years. Admittedly few outside the banks themselves […]