William Black was interviewed recently on the subject of unethical banking practices for Parker and Spitzer's blog (cnn.com). The full interview is available here.
Thank you for another great interview / article on the roots & causes of our current economic predicament. I owe much of my understanding of the current crisis, and the flaws of our current system to the team at UMKC.
William's article makes reference to the way that banks mask underlying solvency problems (mainly by portraying their circumstance as a liquidity issue). This is never formally acknowledged by the industry or policy makers (for obvious reasons). Below is a paper that I recently submitted to the UK's Commission on Banking that provides theoretical and empirical evidence for how banks achieve this:
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Thank you for another great interview / article on the roots & causes of our current economic predicament. I owe much of my understanding of the current crisis, and the flaws of our current system to the team at UMKC.
William's article makes reference to the way that banks mask underlying solvency problems (mainly by portraying their circumstance as a liquidity issue). This is never formally acknowledged by the industry or policy makers (for obvious reasons). Below is a paper that I recently submitted to the UK's Commission on Banking that provides theoretical and empirical evidence for how banks achieve this:
http://forensicstatistician.wordpress.com/2010/11/19/is-modern-banking-fundamentally-flawed/
The premise is that Securitisation facilitates severe mis-pricing of credit risk (which Tax Payers are ultimately underwriting).
Does this paper constitute a more water tight argument to support the claims often made by "The Kansas City School"?
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