Open Letter to European leaders on Europe’s banking crisis: A call to action

This is a once-in-a-lifetime crisis. Trust among financial institutions is disappearing; fear may spread. Last week’s US experience showed that saving one bank at a time won’t work. A systemic response is needed and in Europe this means an EU-led initiative to recapitalise the banking sector. Unless European leaders immediately unite to address this crisis […]

The Paulson Plan: A useful first step but nowhere near enough

The Paulson plan addresses market illiquidity…. The Paulson plan for using up to $700 bn of federal government money to buy up illiquid securities – mainly complex financial instruments such as asset-backed-securities, and in particular private label retail mortgage backed securities – represents an incomplete step towards dealing with the simplest part of the financial […]