Free banking is a “dangerous myth”, according to Andrew Bailey, who is due to become the chief regulator of the financial services industry.

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Free banking ‘a dangerous myth’

The Republican-led House has agreed to replace deep budget cuts scheduled to hit the Pentagon in January with a series of reductions in funding for food stamps, Medicaid and regulation of the financial sector. Read full article > >

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House passes bill to shield Pentagon from automatic spending cuts

In August 2005, Raghuram Rajan, an economist at the University of Chicago’s Booth School of Business, predicted the financial crisis. And he did it at possibly the least friendly of venues: a conference of high-powered economists who had convened in part to honor Federal Reserve Chairman Alan Greenspan. Read full article > >

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Larry Summers vs. the long-termers

The governor of the Bank of England, Sir Mervyn King, rejects criticism of the bank’s role ahead of the financial crisis.

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King rejects criticism for crisis

Can mathematicians be blamed for the financial crash?

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One maths formula and the financial crash

The government says there were “serious failings” in the financial management of a trust running academy schools in Lincolnshire.

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Report criticises academy trust

Official figures indicated that the British economy shrank in the first quarter, pushing the country into its second recession since the financial crisis.

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British Economy Slips Back Into Recession

With the financial industry recovering and fee income reduced by new regulations, lenders are seeking to woo back less creditworthy borrowers.

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Lenders Returning to the Lucrative Subprime Market

When lawmakers added a subsection to the tax code called the 401(k) more than three decades ago, they could not have imagined that this string of three numbers and a letter would become a fixture in the financial lexicon. Read full article > >

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The 401(k): Americans ‘just not prepared’ to manage their own retirement funds

Four years after the onset of the financial crisis — in March 2008 Bear Stearns was rescued from failure — we still lack a clear understanding of the underlying causes. Hundreds of studies and books have given us an increasingly detailed picture of what happened without conclusively answering why. Conventional wisdom has advanced competing theories: Wall Street types took too many risks, encouraged by lax government regulation; or pro-homeownership policies eroded mortgage-lending standards and created the housing bubble. Read full article > >

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Long-term understanding of the U.S. economic crisis

Technically, the financial crisis began in late 2008, with the collapse of Bear Stearns and Lehman Brothers. But 2009 was the year we really felt it. It was in 2009 that we lost more than 5 million jobs — the majority of the total job losses caused by the recession. By 2010, we seemed to turn the corner. The economy added more than a million jobs. Growth returned. The financial markets stabilized. Many forecasters looked to 2011 with real optimism. Read full article > >

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2011 in economic policy: The year of the aftershocks

New rules to stop the resurgence of risky mortgage lending are likely to be imposed in 2013 by the financial regulator.

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Stricter mortgage rules outlined

The so-called Robin Hood tax — a tiny levy on trades in the financial markets that would take money from the banks and give it to the world’s poor — has attracted an array of influential champions.

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Tiny Tax on Financial Trades Gains Advocates

A new study found that just 7 percent of those who lost their jobs after the financial crisis have regained or exceeded their previous financial position.

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Few Workers Have Fully Recovered, Study Says

Eye-popping severance packages thrive in spite of the measures put in place in the wake of the financial crisis to crack down on excessive pay.

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Outsize Severance Continues for Executives, Even After Failed Tenures