I will continue to put up the most interesting videos from the INET Conference a week ago. Here’s one with Simon Johnson, the former Chief Economist of the IMF.
Here’s the question: Can sovereignty and effective international supervision be reconciled when it comes to complex large financial institutions? Simon Johnson lays out a compelling case that they cannot. As he has said time and again, there is no meaningful resolution authority capable of dealing with large complex cross-border institutions like Lehman Brothers. We either let them fail like Lehman or bail them out.
Meanwhile people like Tim Geithner are arguing that financial institutions should be allowed to get even bigger.