Simon Johnson

Simon Johnson is the co-author of 13 Bankers.

Recent Articles

Too Big for Us to Fail

We need counterweights not just to Wall Street's toxic products but to its malign influence.

Financial regulatory reform was on few people's minds when Barack Obama launched his presidential campaign in February 2007. But with the near collapse of the global financial system in 2008, leading to high unemployment and high government deficits for years to come, it became frighteningly obvious that something had to change. However, in one respect -- the politics of financial reform -- nothing has changed. The Obama administration has led the push to reform the financial system. We agree with many of its proposals, including a strong Consumer Financial Protection Agency, dedicated oversight of systemic risk, and new requirements to move derivatives onto exchanges and central clearinghouses. At the same time, we do not think the administration has gone far enough to curb the behavior of "too big to fail" institutions and mitigate the risk that they pose to the financial system and the economy. But these reasonable debates over how the regulatory system should be overhauled are...