Darrell Duffie

 

On his book How Big Banks Fail and What to Do about It

Cover Interview of July 27, 2011

Editor’s note

Originally, this interview ran on the Rorotoko cover page under the headline

“The mechanics of how big banks fail depends little on the cause of a crisis.”



We highlighted two quotes.


On the first page:

“I illuminate the weaknesses in the design of market infrastructure and regulations.  And I make specific proposals for how to remedy the weaknesses.  My goal is to use prose that is accessible to a relatively wide range of non-specialist readers— including those legislators or regulators who wish to come up to speed on the topic.”



On the second:

“My hope is that readers will take away a deeper understanding of the incentives at play in and around these firms, the core “plumbing” of the financial system, and some of the key points of fragility in its design.”