To a substantial extent, it was “nonbanks”—investment houses, hedge and private equity funds—that were at the epicenter of the financial crisis. Contrary to well-established practices, many of those same institutions received extensive government assistance to remain viable. Dealing with this great extension of moral hazard has become the largest challenge for financial reform. What failing institutions need is a dignified burial—not intensive care with hopes for recovery.
This article is available to subscribers only.
Please choose from one of the options below to access this article:
Purchase a print subscription (20 issues per year) and also receive online access to all articles published within the last five years.
Purchase an Online Edition subscription and receive full access to all articles published by the Review since 1963.
Purchase a trial Online Edition subscription and receive unlimited access for one week to all the content on nybooks.com.