Faculty News

Prof. Rosa Abrantes-Metz explains why regulation cannot help prevent another financial crisis

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Excerpt from The Wall Street Journal -- "Institutions should not be allowed to issue uncovered contracts—those not backed by an offsetting position to reduce risk—that are prone to runs. Banks could collateralize short-term assets with cash reserves or Treasurys and draw upon these in the event of a run. This would be a simpler, more focused and less resource intensive way to contain systemic risk."

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