Financial Markets

Audio

McKinsey Executive Roundtable Series in International Economics: Beyond Firefighting: Rethinking Financial Market Regulation (Audio)

Speakers: William H. Donaldson, Stephen Friedman, and Ernest Patrikis
Presider: John Gapper

Listen to experts including former Securities and Exchange Commission Chairman William Donaldson discuss what implications the 2008 financial crisis is likely to have for securities regulation.

See more in Global; Financial Markets; Financial Regulation

Op-Ed

What I am worried about

Author: Roger M. Kubarych
Nikkei

In this Nikkei article, Roger Kubarych says that the major threat facing the global economy and financial markets is an enormous decrease in the capacity for risk taking.

See more in Financial Markets; Global

Analysis Brief

Bears in Moscow

Author: Lee Hudson Teslik

The global financial crisis has taken a particularly harsh toll on Russia, where the leading stock index has lost more than half its value since July. Moscow has devised a bailout package, but analysts say more pain could be on the way, particularly if oil prices keep falling.

See more in Russian Federation; Financial Markets

Op-Ed

Nationalization: A Solution for Housing

Author: Sebastian Mallaby
Washington Post

Nationalizing Fannie Mae and Freddie Mac, the two monster housing-finance companies, may be risky, but it is healthier than other options.  In this Washington Post op-ed, Sebastian Mallaby argues that the US government should nationalize and then dismantle these institutions, creating maximum space in the mortgage market for smaller private players.

See more in United States; Financial Crises; Financial Markets

Op-Ed

Our Tarnished Titans

Author: Sebastian Mallaby
Washington Post

For many decades, banking giants such as JP Morgan, Goldman Sachs and others, enjoyed the reputation that came with their economic clout, political influence and sheer wealth. However, recent events at Lehman Brothers and Bear Stearns have called into question this polished image, says Sebastian Mallaby.

See more in Financial Markets; United States

Op-Ed

Lasting Lessons for Global Investors

Author: Roger M. Kubarych
Nikkei

In this Nikkei article, Roger Kubarych outlines the lessons learned in the past few weeks that will be of lasting importance to global investors. He finds that "too complex to fail" is the prevailing U.S. economic doctrine—with the Bear Stearns bail-out as case in point. Kubarych also argues that banks are capitalists until they need government hand-outs but will revert to type once the crisis fades.

See more in United States; Financial Crises; Financial Markets

Op-Ed

Double Bubble Trouble?

Author: Sebastian Mallaby
Washington Post

In this Washington Post op-ed, Sebastian Mallaby explores the double-bubble theory of the current financial crisis—not only do we face the bursting of a real estate bubble, but we also face the bursting of a second bubble which is the product of a quarter-century expansion in borrowing, excessive confidence in the dollar and an overblown faith in markets.  In order to deal with this double-bubble, Mallaby advocates two reforms: bringing complex, “over the counter” securities onto exchanges and requiring lenders to increase capital cushions during market upswings.

See more in United States; Financial Crises; Financial Markets