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How "Big" Became Bad: America's Underage Fling With Universal Banks, Lawrence G. Baxter
How "Big" Became Bad: America's Underage Fling With Universal Banks, Lawrence G. Baxter
Lawrence G. Baxter
In little more than a decade gigantic new financial institutions have emerged in America. These organizations are quite different from their predecessors in that they share the highly complex, diversified characteristics of foreign “universal banks.” They are still in the process of developing experienced and mature operational and risk management systems. During this same period, the regulatory framework necessary to match the size, power and hazards generated by these new universal banks remains underdeveloped, and the primary framework around which the system is being constructed, namely Basel II, lies in tatters in the wake of the financial crisis of 2007-08. …