Too Big to Save? How to Fix the U.S. Financial System

by Robert Pozen; Foreword by: Robert J. Shiller

• ISBN13: 9780470572948
• ISBN10: 0470572949
• Format: eBook
• Copyright: 2009-10-01
• Publisher: Wiley

Summary

Industry luminary Robert Pozen offers his insights on the future of U.S. financeThe recent credit crisis and the resulting bailout program are unprecedented events in the financial industry. While it's important to understand what got us here, it's even more important to consider how we should get out. While there is little question that immediate action was required to stabilize the situation, it is now time to look for a long-term plan to reform the United States financial industry.That is where Bob Pozen comes in. Perhaps more than anyone in the industry, Pozen commands the respect and attention of the public and private sector. In this timely guide, he outlines his vision for the new financial future and provides actionable advice along the way. To Pozen, there are four high-priority problems that must be addressed, and this book puts them in perspective Analyzes alternative models for government stakes in banks Recommends a new board structure for large financial institutions Examines the importance of broader Fed jurisdiction over systemic risks Proposes a way to revive the securitization of loansWith Too Big to Save, you'll learn the likely future of the finance industry and understand why changes have to be made.

Table of Contents

Foreword

Acknowledgments

The Financial Crisis: A Parable

The United States Housing Slump and the Global Financial Crisis

The Rise and Fall of U.S. Housing Prices

Fannie and Freddie

Mortgage Securitization in the Private Sector

Credit Default Swaps and Mathematical Models

Impact on Stock and Bond Markets

Short Selling, Hedge Funds and Leverage

Capital Requirements at Brokers and Banks

Impact on Short-Term Lending

Insuring Deposits and Money Market Funds

Evaluating the Bailout Act of 2008

Why and How Treasury Recapitalized So Many Banks

Increasing Lending Volumes and Removing Toxic Assets

Limiting Executive Compensation and Improving Boards of Directors

Were Accounting Rules an Important Factor Contributing to the Financial Crisis?

The Future of the American Financial System

The International Implications of the Financial Crisis for the United States

The New Structure of U.S. Financial Regulation

Notes

Glossary

About the Author

Index

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