Julia Black / Charles Goodhart / Michael Power / Paul Woolley

Jointly organised with the LSE Law and Financial Markets Project, the LSE Centre for the Analysis of Risk and Regulation, the LSE Financial Markets Group, and the Paul Woolley Centre for the Study of Capital Market Dysfunctionality, FMG, LSE

Listen to the podcast here

6.30-8.00pm | Wednesday 25 November 2009
Old Theatre, Old Building, LSE

Speakers
Julia Black, Professor of Law, LSE, and Research Associate, ESRC Centre for the Analysis of Risk and Regulation, LSE
Charles Goodhart, LSE Professor Emeritus of Banking and Finance and a member of the Financial Markets Group at the LSE having previously been its Deputy Director (1987-2005)
Michael Power, Professor of Accounting, LSE, and Research Theme Director of the ESRC Centre for the Analysis of Risk and Regulation, LSE
Paul Woolley, Senior Fellow and Chairman of the Advisory Board at the Paul Woolley Centre for the Study of Capital Market Dysfunctionality, FMG, LSE

Chair
Roger McCormick, Visiting Professor, Law Department, LSE and Project Director of the LSE Law and Financial Markets Project

The consequences of banks’ risk-taking behaviour will be felt by the public finances of many countries for at least another generation. Policy makers are trying to devise strategies for containing risk taking by the markets, but the financial sector is showing every sign of rebounding and its capacity for innovation seems inexhaustible. So despite the catastrophic consequences of the market in collateralised debt obligations, for example, there are now reports of banks developing new, ‘smart’ strategies of securitisation which will again enable them to reduce the amount of capital they have to retain to set against their risks. Coming from different disciplines, this panel discussed how risk-taking behaviour, the lifeblood of financial markets, can and should be managed.