If Morgan Stanley Caused The Oil Spill

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by Ingo Walter

Oil gushing into the Gulf of Mexico reminds us of the vulnerability confronting even the most sophisticated of production systems to extreme events. It's unlikely that any upstream oil producer and system integrator is more competent than BP in doing what it does best and in managing the associated risks. But here's a case where the firm's core competency nevertheless left it vulnerable to an industrial accident and massive financial losses, in the process creating large external costs for the environment and a significant swath of society. It's far too early to begin a forensic discussion of the BP disaster or come up with sensible solutions for the future.

Read the full opinion edtiorial on Forbes.com 

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The Dodd-Frank Act, signed into law in July 2010, represented the most significant and controversial overhaul of the U.S. financial regulatory system since the Great Depression. Forty NYU Stern faculty, including editors Viral V. Acharya, Thomas F. Cooley, Matthew P. Richardson, and Ingo Walter, provide a definitive analysis of the Act, expose key flaws and propose solutions to inform the rules’ adoption by regulators, in a new book, Regulating Wall Street: The Dodd-Frank Act and the New Architecture of Global Finance (Wiley, November 2010).

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