Tagged: Financial crisis

Lehman Brothers’ collapse

September 15th marks the 2nd anniverary of Lehman Brothers’ collapse. Mark Williams, a former Federal Reserve Bank examiner,  is the author of “Uncontrolled Risk.”  He is Executive-in-Residence/Master Lecturer in the School of Management. “It has been two years since Lehman Brothers fell and almost brought down the entire financial system. Despite the financial pain uncorked […]

New Basel III rules decided

The Basel Committee on Banking Supervision announced new rules in hopes of making the global banking industry safer. Will the new rules work? LAW professor Cornelius Hurley, director of the Morin Center for Banking and Financial Law and former counsel to the Fed Board of Governors, gives his view on the impact of the new […]

Rating agencies await reform

Although they were integral to the economic collapse, rating agencies thusfar have been spared regulatory reform from Congess.  Former deputy Comptroller of the Currency Robert Bench, now senior fellow at the BU law school’s Morin Center for Banking and Financial Law, says overhaul is needed but it can wait. “The dangers and weaknesses in the credit […]

Dealing with TBTF institutions

Treasury Secretary Timothy Geithner is still trying to convince Congress to pass legislation to deal with “too big to fail” financial institutions before they get to the point of collapse.  Law Professor Cornelius Hurley, director of the Morin Center for Banking and Financial Law and a former counsel to the Fed Board of Governors, says […]

Government hits bank pay

In unprecedented moves, President Obama’s “pay czar” has put restrictions on compensation for top earners at the 7 biggest recipients of taxpayer bailout funds, while the Federal Reserve issued new guidelines to restrict pay practices at all banks to prevent excessive risk taking.  School of Management Professor James Post, an expert on corporate governance and business […]

The Fed’s Future Role

Fed chairman Bernanke’s call for a broad reworking of how the government regulates the financial system was met with skepticism by finance Professor Mark T. Williams, a former Fed bank examiner, and law Professor Tamar Frankel, a securities law authority. Williams says Bernanke missed the point. “The Fed took its eye off the ball.  The […]

“Matters of Principal” – Mortgage bailout misses the mark

School of Law Professor Susan Koniak, in a New York Times op-ed, says the Obama mortgage bailout plan won’t stop foreclosures because it concentrates on reducing interest payments, not reducing principal - a waste of taxpayer money that won’t fix the problem. “For subprime and other non-prime loans, which acount for more than half of all foreclosures, the […]

Weight gain tied to bleak financial situation

Waistlines are expanding as worries about the economy worsen, according to doctors, dietians and trainers in a Forbes.com story last week. Caroline Apovian, M.D., director of the Center for Nutrition and Weight Management and director of clinical research for the Obesity Center, both at Boston Medical Center, has seen the eating habits of her patients worsen. […]

CDS Market: Contributor, not Cause of Economic Woes

School of Management finance Professor Mark Williams, a former Federal Reserve Bank examiner, feels strongly that the Credit Default Swap (CDS) market definitely shares some blame, but it isn’t justified to make it the latest scapegoat responsible for the economic meltdown.  Nonetheless, there is a crying need for regulation of the CDS market and creation […]

Signed letter by academic economists in support of bailout plan

In response to last week’s signed letter by economists, sent to congressional leaders opposing the government bailout plan, a group of academic economists lead by Boston University’s Laurence Kotlikoff, have signed a letter in support of the plan before Congress dealing with the financial crisis. Below is that letter, addressed to the Speaker of the […]