[Pen-l] Another Greenspan Gem

[Michael Perelman <michael@xxxxxxxxxxxxxxxxx>]

Here Greenspan describes the new technologies that have revolutionized 
banks' "basic business ... to measure, manage, and accept risk ... 
permitting ... the unbundling of risks, improvements in the measurement of 
risk, and revamping of risk management process."
"There are some who would argue that the role of the bank supervisor is to 
minimize or even eliminate bank failure; but this view is mistaken in my 
judgment.  The willingness to take risk is essential to the growth of the 
free market economy .. [i]f all savers and their financial intermediaries 
invested in only risk-free assets, the potential for business growth would 
never be realized."

Greenspan, Alan. 1994. The New Risk Management Tools in Banking: Address to 
the Garn Institute of Finance, University of Utah, November 30, 1994.
http://fraser.stlouisfed.org/historicaldocs/ag94/download/27991/Greenspan_19941130.pdf


-- 
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael at ecst.csuchico.edu
michaelperelman.wordpress.com
_______________________________________________
pen-l mailing list
pen-l@xxxxxxxxxxxxxxxxxx
https://lists.csuchico.edu/mailman/listinfo/pen-l