In Guardians of Finance, economists Ross Levine, James R. Barth, and Gerard Caprio Jr. argue that the financial meltdown of 2007 to 2009 was no accident — it was negligent homicide. Levine speaks with Deb Baum about how that happened, what can be done, and why the home team always seems to win.
A new book co-authored by Brown University economist Ross Levine argues that the reason the United States suffers financial crises time and time again is because the major regulatory agencies — the so-called “guardians of finance” — do not work for the public. Instead, they frequently work in the best interests of the financial services industry, the very entities they are supposed to be regulating. Guardians of Finance: Making Regulators Work for Us, published in February by MIT Press, goes beyond telling us what went wrong. The authors also suggest reforms needed to prevent the next crisis. (more…)