Faculty News

Professor Roy Smith discusses the big banks and the creation of "living wills"

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Excerpt from Business Insider -- "'Banks don't want to put that down in writing because those are profitable businesses and anything they say about that could come back and be used by regulators to haunt them if some sort of downturn were to happen.' To Smith's mind, regulators want in writing that the banks would divest trading assets to the point that the firms would go back to the time of the Glass-Steagall act, which kept investing and commercial banking separate. Banks don't want to have the possibility of losing that profit and are trying 'to get through this without giving up anything they don't want to.'"

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