Are ETFs Making Some Asset Managers Too Interconnected to Fail?

By Ryan Clements April 7, 2020 by renholding

Exchange traded funds (ETFs) sit at the center of the COVID-19 crisis selloff.[1] This isn’t surprising, since ETFs are a low-cost highly liquid vehicle for trading entire sectors, asset classes, and even global economies. Yet the use of ETFs …

Too Big to Fool: Moral Hazard, Bailouts, and Corporate Responsibility

By Steven L. Schwarcz October 31, 2016 by renholding

There is an increasing worldwide focus on trying to end the problem of “too big to fail” (“TBTF”). Regulators are concerned that systemically important financial firms might engage in excessive risk-taking because they would profit from a success and be …

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Are ETFs Making Some Asset Managers Too Interconnected to Fail?

Too Big to Fool: Moral Hazard, Bailouts, and Corporate Responsibility