“Risk-taking at banks will soon be larger than ever.”¹
Excerpted from “Economists: Another Financial Crisis on the Way; Nonpartisan Group Led by Nobel Winner Calls for Stronger Financial Reforms” By MATTHEW JAFFE, ABC News, March 2, 2010
Even as many Americans still struggle to recover from the country's worst economic downturn since the Great Depression, another crisis – one that will be even worse than the current one – is looming, according to a new report from a group of leading economists, financiers, and former federal regulators.
In the report, the panel, which includes Rob Johnson of the United Nations Commission of Experts on Finance and bailout watchdog Elizabeth Warren, warns that financial regulatory reform measures proposed by the Obama administration and Congress must be beefed up to prevent banks from continuing to engage in high-risk investing that precipitated the near-collapse of the U.S. economy in 2008.
The report warns that the country is now immersed in a "doomsday cycle" wherein banks use borrowed money to take massive risks in an attempt to pay big dividends to shareholders and big bonuses to management – and when the risks go wrong, the banks receive taxpayer bailouts from the government. …See: Roosevelt Institute: Make Markets be Markets | Time Warner Center, 3/3/10Excerpted from “Fresh Ideas From Leading Thinkers For True Financial Reform” By Shahien Nasiripour, The Huffington Post, First Posted: 03- 2-10 06:00 PM | Updated: 03- 2-10 09:31 PM
What will it take to fix the nation's broken financial system? If anyone really knows for sure, it's the great minds gathering in New York for a conference tomorrow morning. …