{"id":6822,"date":"2014-05-16T14:28:13","date_gmt":"2014-05-16T21:28:13","guid":{"rendered":"http:\/\/www.blackswanreport.com\/blog\/?p=6822"},"modified":"2014-05-16T14:28:13","modified_gmt":"2014-05-16T21:28:13","slug":"too-big-to-fail-battle-between-larry-summers-nassim-taleb-the-tell-marketwatch","status":"publish","type":"post","link":"https:\/\/www.blackswanreport.com\/blog\/2014\/05\/too-big-to-fail-battle-between-larry-summers-nassim-taleb-the-tell-marketwatch\/","title":{"rendered":"Too-big-to-fail battle between Larry Summers, Nassim Taleb &#8211; The Tell &#8211; MarketWatch"},"content":{"rendered":"<blockquote><p>Summers told Taleb that he was for more capital, more liquidity, living wills for banks and procedures to wind them down. \u201cWhat are you for?\u201d he challenged.<\/p>\n<p>\u201cI\u2019m for punishment,\u201d Taleb replied.<\/p>\n<p>Taleb outlined a system in which everyone would know which systemically important banks would be bailed out, but would presumably see strict oversight of bonuses and operations afterward. Other institutions would be left to fail, he said.<\/p>\n<p>Summers countered that such a system was in place prior to the financial crisis. But when push came to shove, Bear Stearns, an investment bank that wasn\u2019t envisioned as systemically important, was rescued. And then we all know what happened when Lehman Brothers failed.<\/p>\n<p>Summers said that building a system is sort of like saying you\u2019ll never pay ransom to kidnappers. It sounds good in practice, but in reality sometimes even the Israelis pay ransom, he said.<\/p>\n<p>Taleb had the final word, saying the system should be designed so that you can\u2019t get upside without being exposed to the downside.<\/p>\n<p>The audience seemed split between the antagonists, with each getting smatterings of applause in the back-and-forth debate.<\/p><\/blockquote>\n<p>via <a href=\"http:\/\/blogs.marketwatch.com\/thetell\/2014\/05\/15\/too-big-to-fail-battle-between-larry-summers-nassim-taleb\/?mod=WSJBlog&amp;utm_source=dlvr.it&amp;utm_medium=facebook\">Too-big-to-fail battle between Larry Summers, Nassim Taleb &#8211; The Tell &#8211; MarketWatch<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Summers told Taleb that he was for more capital, more liquidity, living wills for banks and procedures to wind them down. \u201cWhat are you for?\u201d he challenged. \u201cI\u2019m for punishment,\u201d Taleb replied. Taleb outlined a system in which everyone would know which systemically important banks would be bailed out, but would presumably see strict oversight [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[102],"tags":[801],"class_list":["post-6822","post","type-post","status-publish","format-standard","hentry","category-event","tag-salt"],"_links":{"self":[{"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/posts\/6822","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/comments?post=6822"}],"version-history":[{"count":2,"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/posts\/6822\/revisions"}],"predecessor-version":[{"id":6824,"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/posts\/6822\/revisions\/6824"}],"wp:attachment":[{"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/media?parent=6822"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/categories?post=6822"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/tags?post=6822"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}