Risk, not size, is bank industry’s woe

Uncontrolled Risk - Williams bookThe problem isn’t that banks are too big; they’re just taking excessive risk.  Ex-Federal Reserve Bank examiner Mark T. Williams, who teaches finance in the School of  Management and is author of “Uncontrolled Risk” about the fall of Lehman Brothers, says in a Reuters commentary that any meaningful financial reform must address lending standards while tightening oversight and policing.

“A country made up of ten well-capitalized big banks is much stronger than one with over 7,000 small banks taking dangerously big bets.”

Contact Mark T. Williams, 617-358-2789, williams@bu.edu

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