April 22, 2015
Wall Street Watchdogs Should Prevent Crises, Not Build Buffers
By Pedro Nicolaci da Costa
The Wall Street Journal, April 22, 2015. All Rights Reserved.
The effort by financial regulators to ensure big banks and other financial institutions have adequate levels of capital is misguided since that will only help lessen the impact of a crisis, not prevent one.
That’s the conclusion of Eric Tymoigne, an economist at Lewis & Clark College, in a presentation last week at the Levy Economics Institute‘s 24th Minsky Conference.
Read more: http://blogs.wsj.com/economics/2015/04/22/wall-street-watchdogs-should-prevent-crises-not-build-buffers/