Bankers and Regulators Fail Money and Banking 101 

Bankers and Regulators Fail Money and Banking 101 
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Robert Wright
Byron Carson
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Commentary

During the 2008 financial crisis, banks failed because they assumed too much credit risk by holding complex assets that defaulted. So far during the 2023 crisis, banks have failed because they took on too much interest rate risk by holding too much long-term fixed-rate debt, including U.S. Treasuries. That’s a mistake undergrad economics majors aren’t supposed to make, which raises the question of who’s running major financial intermediaries.

Robert E. Wright is senior research fellow at the American Institute for Economic Research. Wright has taught business, economics, and policy courses at Augustana University, NYU’s Stern School of Business, Temple University, the University of Virginia, and elsewhere since taking his Ph.D. in History from SUNY Buffalo in 1997. He is the (co)author or (co)editor of over two dozen major books, book series, and edited collections, including “Fearless: Wilma Soss and America's Forgotten Investor Movement.”
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