Luigi Zingales
Luigi Zingales is Professor of Entrepreneurship and Finance at the University of Chicago Booth School of Business and author of the forthcoming book A Capitalism for the People.
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2012-02-02
| The decision in January by Philipp Hildebrand to resign as Chairman of the Board of the Swiss National Bank, after a suspicious trade made by his wife, is to be welcomed. But, while Hildebrand’s resignation should serve as a precedent to be followed elsewhere, the circumstances surrounding his departure smell much worse than what caused it.... read |
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2011-11-29
| The US Congress, like legislatures elsewhere, effectively exempts itself from the normal rules of insider trading. But the real issue is not just insider trading – it's that Congress and other legislatures live by rules that are very different from those imposed on ordinary citizens.... read |
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2011-09-22
| Three years have now passed since the collapse of Lehman Brothers, which triggered the start of the most acute phase of the 2007-2008 financial crisis. But the financial world is no safer today, because the data needed to identify what caused the crisis have been withheld.... read |
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2011-07-25
| In trying to understand the pattern and timing of government interventions during a financial crisis, we should probably conclude that, to paraphrase the French philosopher Blaise Pascal, politics have incentives that economics cannot understand. Unfortunately, those incentives also often bring about crises in the first place.... read |
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2011-05-18
| The launch of two European antitrust investigations into the market for credit default swaps might appear to be no more than a political vendetta against an alleged culprit behind the 2010 European sovereign-debt crisis. But the existence of political motivations does not undermine the legitimacy of the new inquiries.... read |
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2011-03-22
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| The insider-trading trial of Raj Rajaratnam, a billionaire hedge-fund manager, has now begun. It is likely to provide an especially lurid exposé of the financial world's ambient corruption.... read |
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2010-12-23
| It is universally recognized that a key factor behind the financial crisis was the diffusion of collateralized debt obligations, which transformed lower-rated debt into highly rated debt. And now Europe has embraced this egregious financial alchemy, in the form of the European Financial Stability Facility.... read |
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2010-10-26
| Capitalists don't typically scream and even going to court to defend the principle that legitimate owners cannot exercise any control over their property. But it is happening today - not in Latin America or in socialist Sweden, but in the US.... read |
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2010-08-18
| In its July session, the European parliament approved some of the strictest rules in the world on the bonuses paid to bankers. If the problem is the moral hazard implied by being too big to fail, the solution is not to restrict pay, but to eliminate the hazard by forcing shareholders to issue more equity or lose their stock when banks’ debt starts to become risky. ... read |
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Banking on the IMF
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Luigi Zingales 
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The biggest financial nightmare looming over the world economy is the insolvency of a large international bank. To minimize the risk of an unruly collapse, an international resolution mechanism with authority over all major international financial institutions is needed – the IMF being the obvious candidate. ... read
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2010-04-19
| Credit default swaps, once an esoteric product known only to a small number of sophisticated investors and specialized academics, are now widely blamed as one of the main causes of the financial crisis. That odious reputation is jeopardizing their survival, but to ban them would merely sow the seeds of the next financial bubble.... read |
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2010-12-23
| It is universally recognized that a key factor behind the financial crisis was the diffusion of collateralized debt obligations, which transformed lower-rated debt into highly rated debt. And now Europe has embraced this egregious financial alchemy, in the form of the European Financial Stability Facility.... read |
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2010-08-18
| In its July session, the European parliament approved some of the strictest rules in the world on the bonuses paid to bankers. If the problem is the moral hazard implied by being too big to fail, the solution is not to restrict pay, but to eliminate the hazard by forcing shareholders to issue more equity or lose their stock when banks’ debt starts to become risky. ... read |
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2011-03-22
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| The insider-trading trial of Raj Rajaratnam, a billionaire hedge-fund manager, has now begun. It is likely to provide an especially lurid exposé of the financial world's ambient corruption.... read |
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2008-09-26
| The decisions that Congress must make now will affect not only the US economy's short-term prospects, but will shape the type of capitalism that we will have for the next 50 years. For anyone who believes in free markets, the most serious risk of the current situation is that the interest of a few financiers will undermine the capitalist system’s fundamental workings. ... read |
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2010-06-17
| The biggest financial nightmare looming over the world economy is the insolvency of a large international bank. To minimize the risk of an unruly collapse, an international resolution mechanism with authority over all major international financial institutions is needed – the IMF being the obvious candidate. ... read |
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2011-09-22
| Three years have now passed since the collapse of Lehman Brothers, which triggered the start of the most acute phase of the 2007-2008 financial crisis. But the financial world is no safer today, because the data needed to identify what caused the crisis have been withheld.... read |
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2010-10-26
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| Capitalists don't typically scream and even going to court to defend the principle that legitimate owners cannot exercise any control over their property. But it is happening today - not in Latin America or in socialist Sweden, but in the US.... read |
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2011-05-18
| The launch of two European antitrust investigations into the market for credit default swaps might appear to be no more than a political vendetta against an alleged culprit behind the 2010 European sovereign-debt crisis. But the existence of political motivations does not undermine the legitimacy of the new inquiries.... read |
2011-05-18
