Viral Acharya, 20 August 2010

Viral Acharya talks to Viv Davies about the Dodd-Frank Act and his recent work on capital requirements, market-based measures of systemic risk and stress tests. He highlights the new NYU Stern Systemic Risk Rankings of US financial institutions, which use the Marginal Expected Shortfall (MES) as its basis. Acharya discusses the shortcomings of the Basel III proposals and compares the recent European stress tests with those undertaken in the US. He highlights the importance of international coordination in the areas of derivatives, and agrees that financial reform compliance will require a cultural shift in the banking system.

Xavier Freixas, 13 August 2010

Xavier Freixas talks to Viv Davies about the outcome of the recent stress tests undertaken by European banks. Freixas explains his view of the purpose of the tests and why he considers they were successful in spite of criticisms regarding their lack of robustness. He discusses the impact of the tests on the Spanish cajas and the Spanish banking system, and comments on the surge in investment in the activities of European banks following the results of the tests.

Daniel Gros, 02 July 2010

Daniel Gros of CEPS talks to Viv Davies about Vox's latest eBook, which brings together the views of leading economists on what more needs to be done to rescue the Eurozone. While not excluding the possibility of a breakup of the eurozone, Gros discusses a potential solution for Greece and the key role of the proposed stress tests on European banks, warning that the "devil is in the detail". The interview was recorded in late June 2010.

Roger Kubarych, 04 May 2009

The financial crisis is not over but it seems less scary since the US stock market decided that most big banks will survive. This column provides a current scoreboard of the crisis game and reminds everybody that the underlying problems are hardly resolved. A lot of banks sorely need capital and need to raise it relatively cheaply.

Ricardo Caballero, 20 April 2009

The approaching release of stress-test results is accompanied by widespread fears that the tests are not rigorous enough. This column argues that a modification to the Capital Assistance Programme would neutralise these concerns. Banks should hold the capital implied by the central scenario, and buy government insurance to cover more extreme outcomes, thus taking the aggregate risk off the leveraged institutions and breaking the link between bad economic news and the financial sector’s health.

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