The recent financial crisis was an accident, a perfect storm fueled by an unforeseeable confluence of events that unfortunately combined to bring down the global financial systems. This is at least the story told and retold by a chorus of luminaries that includes Timothy Geithner, Henry Paulson, Robert Rubin, Ben Bernanke, and Alan Greenspan. In Guardians of Finance, economists James Barth, Gerard Caprio, and Ross Levine argue that the financial meltdown of 2007 to 2009 was no accident; it was negligent homicide. They show that senior regulatory officials around the world knew or should have known that their policies were destabilizing the global financial system, had years to process the evidence that risks were rising, had the authority to change their policies--and yet chose not to act until the crisis had fully emerged.
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James R. Barth is Lowder Eminent Scholar in Finance at Auburn University and Senior Finance Fellow at the Milken Institute. Gerard Caprio Jr. is William Brough Professor of Economics and Chair of the Center for Development Economics at Williams College. Ross Levine is James and Merryl Tisch Professor of Economics and Director of the William R. Rhodes Center for International Economics and Finance at Brown University. The three are coauthors of Rethinking Banking Regulation: Till Angels Govern.
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