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Proposals for Wall Street

By experts and staff

Published
  • Benn SteilCFR Expert
    Senior Fellow and Director of International Economics
  • Dinah Walker
    Analyst, Geoeconomics

As the graph above indicates, the markets‘ perception of the risk of failure increased following the bankruptcy of Lehman Brothers. The Wall Street crisis has demonstrated the need for a systematic solution rather than case-by-case bailouts. Secretary Paulson has responded with a plan to create a $700 billion fund to buy up troubled assets from banks. The articles below discuss the risks involved and propose alternative solutions.

The Paulson Plan

The Dodd Plan

Wyplosz: Why Paulson Is (Maybe) Right (voxeu.org)

Zingales: Why Paulson Is Wrong (voxeu.org)

Calomiris: Matched Preferred Stock Plan

Wolf: Paulson’s Plan