The Great Debate©: Regulate or Restrict Banking Activities?

Written by John Lounsbury There are at least three schools of thought on what the correct policy direction for the banking industry should be. Two of them are in the title: (1) Tighten regulation of banking activities, or (2) restrict what activities can be undertaken by banks. The third (not included in this debate) is …

The Great Debate©: How to Resolve the Euro Crisis

by Amar Bhidé, Elliott Morss and John Lounsbury This is a three sided debate on the Euro crisis.  Prof. Amar Bhidé, Thomas Schmidheiny Professor of International Business, Fletcher School of Business, Tufts University,  represents the position that the current course of action simply needs to be followed through to be successful.  Elliott Morss, former IMF …

Banks: Flawed Regulation

Reversing the robotic gigantism of banking ought to be the top priority for reform. Bankers were once supposed to know every borrower, and to make case-by-case lending decisions. Now, however, banks use models conjured up by faraway financial wizards to mass-produce credit and a range of derivative products. Mass-production favors the growth of mega-banks, so, unlike the misjudgments of lending officers, these behemoths’ defective models have had disastrous consequences.