Flexibility is one key to dealing with a financial crisis, as no one, including regulators or even the big banks, can predict the exact scope and impact points of the next systemic failure, although separate probability analysis indicates derivatives are likely to be involved. A proposed Senate bill would eliminate a key U.S. Federal Reserve’s option in dealing with the next financial crisis, former Fed Chief Ben Bernanke wrote in his recent Brookings Institute blog post. In particular, the bill takes the “easy button” solution to provide unrestricted cash to banks during crisis off the table, as opposed to separating toxic…
Bernanke Takes On Warren and Vitter, Avoids Key Issue
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.
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