On September 15, 2009

After the Fall, Little Progress on Financial Reform

A year removed from the failure of Lehman Brothers, from peering into the economic abyss, and the patient is doing just fine. Phew, close call! Now let’s get outside and enjoy the sunshine. Investors feel frisky again, banks are pulling their structured finance playbooks down off the shelf. Washington and the usual lobbyist suspects are doing the Lambada. Has anything changed? At the margins, yes. There’s a growing consensus that big banks should play it safe by keeping more money in the vault (you know, just in case). Regulators have woken up from their van Winkelesque snooze. Derivatives make us somewhat antsier than they used to. Alan Greenspan’s mug is no longer destined for Mt. Rushmore, and people may be…


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