http://www.nakedcapitalism.com/2008/05/jim-hamilton-scolds-bernanke-for.html Mon, 23 Nov 2009 09:23:14 -0500 http://wordpress.org/?v=2.8.4 hourly 1 http://www.nakedcapitalism.com/2008/05/jim-hamilton-scolds-bernanke-for.html#comment-8079 Richard Kline Thu, 15 May 2008 07:49:00 +0000 http://www.nakedcapitalism.com/2008/05/jim-hamilton-scolds-bernanke-for-regulatory-neglect/#comment-8079 I'm in complete agreement with Jim Hamilton that the lack of equity reserves throughout the financial system has been a major source of fragility. Any reform proposal for the banking system must address this salient failing. We'll know that Congress or the public authorities are serious about remedies as opposed to money gifts when this particular issue becomes a subject for serious proposed regulation, statutory or otherwise. A good remedy may take more than simply mandating greater equity levels, but that certainly is the floor position of any reform proposal. Institutions can't be both too big to fail and too poor to capitalize themselves. . . . If it's the Real World we're talking about, that is. I’m in complete agreement with Jim Hamilton that the lack of equity reserves throughout the financial system has been a major source of fragility. Any reform proposal for the banking system must address this salient failing. We’ll know that Congress or the public authorities are serious about remedies as opposed to money gifts when this particular issue becomes a subject for serious proposed regulation, statutory or otherwise. A good remedy may take more than simply mandating greater equity levels, but that certainly is the floor position of any reform proposal. Institutions can’t be both too big to fail and too poor to capitalize themselves. . . . If it’s the Real World we’re talking about, that is.

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