
Sign up to save your podcasts
Or


Simon Johnson of MIT and the author (with James Kwak) of 13 Bankers talks with EconTalk host Russ Roberts about the origins of the financial crisis and how the next one might be prevented. Invoking the work of George Stigler, Johnson argues that the financial sector has captured the regulatory process and the result is that regulation and government intervention have been steered more by the interests of the financial sector than to the benefit of the general public. Johnson argues for capping the size of banks in order to reduce the danger of systemic risk and the too-big-to-fail excuse for bailing out banks. Johnson also discusses the role of the Fed in subsidizing risk-taking and leverage in the financial sector.
By Russ Roberts4.7
42124,212 ratings
Simon Johnson of MIT and the author (with James Kwak) of 13 Bankers talks with EconTalk host Russ Roberts about the origins of the financial crisis and how the next one might be prevented. Invoking the work of George Stigler, Johnson argues that the financial sector has captured the regulatory process and the result is that regulation and government intervention have been steered more by the interests of the financial sector than to the benefit of the general public. Johnson argues for capping the size of banks in order to reduce the danger of systemic risk and the too-big-to-fail excuse for bailing out banks. Johnson also discusses the role of the Fed in subsidizing risk-taking and leverage in the financial sector.

26,326 Listeners

2,462 Listeners

2,280 Listeners

377 Listeners

1,521 Listeners

78 Listeners

984 Listeners

480 Listeners

23 Listeners

6,621 Listeners

132 Listeners

2,018 Listeners

31 Listeners

739 Listeners

579 Listeners

3,349 Listeners

707 Listeners

532 Listeners

8,766 Listeners

155 Listeners

1,087 Listeners