In this video interview, the economist and former banking regulator William K. Black says that he would use the financial crisis to eliminate the systemically dangerous institutions. He thinks the mindset that led to the crisis is still intact. He also explains what he would do differently if he would run the Federal Reserve. Related to the euro crisis, Black thinks it would be best to let Greece, Portugal, Spain and Ireland leave the EMU.
By Lars Schall
William K. Black is a professor of economics and law at the University of Missouri at Kansas City, USA. He is the author of “The Best Way to Rob a Bank Is to Own One,” which deals with the Saving & Loan crisis of the 1980s in the United States and his role as a tough regulator. Black developed the concept of “control fraud” – fraud, in which the CEO or a head of state uses the company or the state as a “weapon.” Control frauds cause greater financial losses than all different forms of property crime combined and kill thousands. His academic articles, congressional testimony, and musings about the financial crisis can be found at his Social Science Research Network Page, at New Economic Perspectives, and the financial news site Benzinga.
In addition to the following video interview, we also would like to recommend to read The Great Global Bank Robbery, a comprehensive interview that Lars Schall conducted with Bill Black in 2010.
BREAK UP THE BANKS