6: Banking panics and banking reform

Michael Bordo interviewed by Romesh Vaitilingam, 23 April 2010 Michael Bordo of Rutgers University compares US banking panics in the early 1930s with panics in the shadow banking system and the repo market in 2007 and in investment banks and the universal banking system after Lehman failed. He argues that the bailouts of ‘too big to fail’ banks may lead to future crises, and discusses possible remedies. The interview with Romesh Vaitilingam was recorded at a conference on ‘Lessons from the Great Depression for the Making of Economic Policy’ in London in April 2010.