Prof. Simon Johnson writes for The Los Angeles Times about the Federal Reserve’s decision to raise interest rates despite the recent instability in the banking sector. “Increasing the deposit insurance cap and focusing on small-business transaction accounts could stabilize midsize banks, reduce more deposit transfers out of those institutions, and shore up confidence in the banking system,” writes Johnson.
Writing for The Los Angeles Times, Prof. Simon Johnson outlines how regulation and supervision of the banking industry should be strengthened following the collapse of Silicon Valley Bank. “A well-regulated system is still the right goal,” writes Johnson. “The Federal Reserve needs to overhaul and improve its bank supervision — and to make that consistent with its macroeconomic policy for interest rates.”
Educators from the Asia School of Business and MIT have developed a course aimed at teaching central bankers how the market is impacted by bottlenecks and how monetary policy can help, reports Enda Curran for Bloomberg. “The curriculum covers topics that include crisis prevention, behavioral finance, cybersecurity, digital currencies, and ethics,” writes Curran.
Bloomberg reporter Benjamin Bain writes that Prof. Gary Gensler has been confirmed as the new head of the Securities and Exchange Commission. Bain writes that Gensler is “poised to confront everything from the fallout of the GameStop Corp. trading frenzy to the deluge of special purpose acquisition companies and the collapse of Archegos Capital Management.”
Prof. Gary Gensler has been approved to lead the Securities and Exchange Commission, reports Marcy Gordon for the AP. The appointment signals “an emphasis on investor protection for the Wall Street watchdog agency after a deregulatory stretch during the Trump administration,” writes Gordon.
Prof. Kristin Forbes discusses monetary policy, currency wars and what she considers the biggest risk to the global economy with Daybreak Asia on Bloomberg TV. “For me, the biggest concern is what happens next on trade wars and especially the uncertainty around trade wars,” says Forbes.