# Prof. Kim Schoenholtz's blog post on banking reform is highlighted

1 Faculty News December 8, 2014 ![Financial Times logo](/sites/default/files/styles/246w/public/assets/images/uat_025700.jpg?itok=LSPbU2V1)>

Excerpt from [Financial Times](http://www.ft.com/intl/cms/s/0/3f0d8832-7edf-11e4-b83e-00144feabdc0.html#axzz3LPaMh0di) -- "Another worry, as pointed out by Stephen Cecchetti and [Kermit Schoenholtz](http://www.stern.nyu.edu/faculty/bio/kim-schoenholtz) in their blog Money, Banking and Financial Markets, is that if much of the loss-absorbing debt is held by leveraged investors such as hedge funds then there is a risk of contagion across the financial system and back to banks."

[Read more](http://www.ft.com/intl/cms/s/0/3f0d8832-7edf-11e4-b83e-00144feabdc0.html#axzz3LPaMh0di)