HKS Affiliated Authors


Stamping Nonbanks 'SIFI' Is Harmful and Needless. Hal Scott, February 14, 2013, Opinion. "The Financial Stability Oversight Council is about to decide which nonbanks with assets of $50 billion or more to designate as systemically important. It should use this authority extremely sparingly because it is based on the flawed premise of connectedness. The Lehman Brothers failure is instructive. Lehman's bankruptcy did not set off a chain reaction of failures of connected financial firms (those with direct exposure to one another). What it did set off was a contagious run on a wide spectrum of financial firms..." Link