Richard Herring on What's Next for Investment Banks
Episode Description
Wharton Professor Richard Herring looks at failures of ratings agencies and other factors besetting investment banks.
Brief Summary
The episode covers the Fed's bailout of Bear Stearns and systemic risks in investment banking.
Key points
- Investment Banks vs. Commercial Banks. Investment banks have evolved to resemble commercial banks, raising new concerns.
- The Fed's Surprising Bailout. The Fed's unexpected bailout of Bear Stearns marked a significant shift in policy.
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Episode highlights
- Investment Banks vs. Commercial BanksInvestment banks have evolved to resemble commercial banks, raising new concerns.“Investment banks have become more and more like commercial banks.”4:46Sep 17, 2008
- The Fed's Surprising BailoutThe Fed's unexpected bailout of Bear Stearns marked a significant shift in policy.“The Fed was caught by surprise.”7:56Sep 17, 2008
Episode quotes
Tension
65/ 100Some tension
