After the Crash: The Future of Finance

Preface

vii Preface In 2004 the Brookings Institution joined with Nomura Institute of Capital Markets Research to showcase research on selected topics in financial market structure and regulation of interest to policymakers, scholars, and market practitioners in the United States and Japan, as well as elsewhere. Initially led by Brookings senior fellow Robert E. Litan and Yasuyuki Fuchita, senior managing director of Nomura Institute of Capital Markets Research, the collaboration was joined in 2008 by Richard J. Herring of the Financial Institutions Center at the Wharton School of the University of Pennsylvania. A conference has been convened each year since 2004, leading to four volumes published by Brookings Institution Press, most recently Prudent Lending Restored: Securitization after the Mortgage Meltdown (2009).1 The chapters in this fifth volume in the series are based on presentations made at a conference, After the Credit Crash: The Future of Finance, held on October 16, 2009, at the Wharton School in Philadelphia. The conference considered the future of the financial services industry after the crisis of 2007–08 and focused on commercial banks, investment banks, and hedge funds in particular. All of the chapters represent the views of the authors and not necessarily those of the staff, 1. The first five of these conferences were sponsored by the Tokyo Club Foundation for Global Studies (now part of Nomura Foundation) and the Brookings Institution. 00-0404-1 fm.indd 7 7/12/10 5:58 PM viii preface officers, or trustees of the Brookings Institution, the Nomura Institute of Capital Markets Research, or the Wharton Financial Institutions Center. The editors thank Adriane Fresh for research assistance and for checking the factual accuracy of the manuscript; Diane Hammond for careful editing; and Lindsey Wilson for organizing the conference and providing administrative assistance . Both the conference and this publication were funded in part by Nomura Foundation. 00-0404-1 fm.indd 8 7/12/10 5:58 PM ...