Martin Hellwig

14
mai

Reaction to “The bankers'new clothes”

Summary: - Bankers' New Clothes is a useful book in that it makes clearly the case for higher equity requirements for banks. This does seem a much sensible path than separating ill-defined activities. - The book does however fail to account for the difference between US and EU financial systems. As a consequence, significant costs of higher equity requirements are overlooked. Th [...]