Steven L. Schwarcz (Duke): Too Big to Fool: Moral Hazard, Bailouts, and Corporate Responsibility. Bethany McLean on how Wells Fargo’s cutthroat corporate culture allegedly drove bankers to fraud. Shyam Sunder (Yale): Financial Regulation for a Better Society. The nation’s biggest banks have a common gripe — they have too much money. From PUP, the introduction to Adaptive Markets: Financial Evolution at the Speed of Thought by Andrew W. Lo; and the first chapter from The End of Theory: Financial Crises, the Failure of Economics, and the Sweep of Human Interaction by Richard Bookstaber. Republicans don’t want to know what these guys are up to: Trump and Congress target a key bank monitor set up to stop another financial crisis. Next recession likely caused by financial crisis, says BIS.
