Are We Protected From Another Collapse?

Banks, Securitization & Incentives by Elliott Morss, Morss Global Finance Introduction The bank crisis was serious – $52 trillion in capital losses leading to the largest global recession since 1929. We should work hard to insure it does not happen again. But there is a problem: there is little agreement on why it happened. The …

Did Securitization Lead to Riskier Corporate Lending?

by Joao Santos, Federal Reserve Bank of New York There’s ample evidence that securitization led mortgage lenders to take more risk, thereby contributing to a large increase in mortgage delinquencies during the financial crisis. In this post, I discuss evidence from a recent research study I undertook with Vitaly Bord suggesting that securitization also led …