Forum Explores Causes of the Financial Crisis

This story appeared in Bank Digest.

After hearing public testimony from leaders of both private and public sector entities in January 2010, the Financial Crisis Inquiry Commission (FCIC) brought together experts who have researched the financial crisis for a forum in Washington, D.C., on Feb. 26-27, 2010, at American University  Washington College of Law. The forum was a part of the FCIC’s ongoing efforts to hear from academic experts and economists on issues related to the crisis.

The economists presented working papers to the Commissioners on the key issues and events leading up to the crisis and on its underlying causes. The presentations were followed by discussion with the Commissioners. Links to the working papers for each session are provided below.

Session 1: : Interconnectedness of Financial Institutions; “Too Big to Fail,” Randall Kroszner, Norman R. Bobins Professor of Economics, University of Chicago.

Session 2: Macroeconomic Factors and U.S. Monetary Policy, Pierre-Olivier Gourinchas, Associate Professor of Economics, University of California, Berkeley.

Session 3: Risk Taking and Leverage, John Geanakoplos, James Tobin Professor of Economics, Yale University.

Session 4: Household Finances and Financial Literacy, Annamaria Lusardi, Joel Z. and Susan Hyatt Professor of Economics, Dartmouth University; Research Associate at the National Bureau of Economic Research.

Session 5: Mortgage Lending Practices and Securitization, Chris Mayer, Paul Milstein Professor of Real Estate, Columbia University; Visiting Scholar at the Federal Reserve Bank of New York State and Research Associate at the National  Bureau of Economic Research.

Session 6: Government-Sponsored Enterprises and Housing Policy, Dwight Jaffee, Willis Booth Professor of Banking, Finance, and Real Estate, Co-Chair, Fisher Center for Real Estate and Urban Economics, University of California, Berkeley.

Session 7: Derivatives and Other Complex Financial Instruments, Markus Brunnermeier, Edwards S. Sanford Professor of Economics, Princeton University

 Session 8: Firm Structure and Risk Management, Anil Kashyap, Edward Eagle Brown Professor of Economics and Finance and Richard, N. Rosett Faculty Fellow, University of Chicago.

Session 9: Shadow Banking, Gary Gorton, Professor of Finance, School of Management, Yale University.