Book Description
Editorial Reviews
This is an extremely useful book: thorough and balanced. The reader will learn a lot from Morris Goldstein’s insightful and candid review of a large body of theoretical and empirical work and from the lessons he draws about US and EU-wide stress tests. An impressive piece of analysis.
—Ben Bernanke, Distinguished Fellow at the Brookings Institution and former Chairman of the Board of Governors of the Federal Reserve System
The best work available on stress tests, capital adequacy, and the leverage ratio. A truly excellent book.
—Charles Goodhart, Emeritus Professor at the London School of Economics and former Member of the Bank of England’s Monetary Policy Committee
A comprehensive treatment—full of valuable real-world illustrations and with plenty of food for thought on how to improve stress testing, capital adequacy, and regulation. A stimulating read.
—Stefan Ingves, Governor of Sweden’s Riksbank and Chair of the Basel Committee on Banking Supervision
In this important book, Morris Goldstein challenges the false reassurances of ‘reformed’ yet inadequate regulations that maintain a dangerous banking system. Delving into the devilish details, he offers a better path.
—Anat Admati, George G. C. Parker Professor of Finance and Economics, Stanford Graduate School of Business, and coauthor of The Bankers’ New Clothes
Takes bank stress tests from the impenetrable to the understandable. Morris Goldstein’s reform proposals—presented with clarity and based on a keen appreciation of the facts—will stir up a hornet’s nest among apoplectic bankers but will be welcome for those concerned about our next financial crisis.
—Orley Ashenfelter, Joseph Douglas Green 1895 Professor of Economics at Princeton University and former President of the American Economic Association
A powerful plea to end the make-believe in dealing with risk in banking.
—Martin Hellwig, Director, Max Planck Institute for Research on Collective Goods, and coauthor of The Bankers’ New Clothes
As we navigate the new regulatory regime of stress-tested bank capital, we are lucky to have Morris Goldstein to guide our way. Bankers, regulators and legislators ignore this timely and impressive volume at their peril.
—Peter Fisher, Senior Fellow, Tuck School of Business at Dartmouth, and former Undersecretary for Domestic Finance at the US Treasury
Brilliantly distills the essence from a wide range of empirical studies to show what still needs to be done to make major international banks more resilient. A magisterial book.
—Philip Turner, University of Basel and former Deputy Head of the Monetary and Economics Department at the Bank for International Settlements
Marshaling ample data and astute analysis, Morris Goldstein demolishes the repeated claim of Wall Street bankers that much higher minimum capital requirements for our largest banks would do grave harm to the US economy. Anyone serious about how to prevent future financial crises and taxpayer bailouts has to read this indispensable book.
—Dennis Kelleher, President, Better Markets
The data underlying this analysis are available here [zip].