BU Now » banking industry http://blogs.bu.edu/bunow News, information and research from Boston University Wed, 21 Sep 2011 18:14:24 +0000 en hourly 1 http://wordpress.org/?v=3.1.4 Greenspan notes Fed’s flaws http://blogs.bu.edu/bunow/2010/03/19/greenspan-notes-feds-flaws/ http://blogs.bu.edu/bunow/2010/03/19/greenspan-notes-feds-flaws/#comments Fri, 19 Mar 2010 20:33:31 +0000 Dick Taffe http://blogs.bu.edu/bunow/?p=4838 Alan GreenspanEx-Federal Reserve Chairman Alan Greenspan has acknowledged the Fed’s failure to grasp the magnitude of the housing bubble, but offered some policy prescriptions to avoid another crash.  Economics Professor Laurence Kotlikoff, whose new book “Jimmy Stewart is Dead” is about bankings’s future, applauds Greenspan for saying banks should have to hold bonds that automatically covert to equity when capital falls below a certain threshold.

“That’s a big step toward ‘Limited Purpose Banking,’ which I’ve been proposing and which Bank of England Governor Mervyn King is very strongly considering.”

Contact Laurence Kotlikoff, 617-353-4002, kotlikoff@bu.edu

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