by Viral Acharya & Matthew Richardson
In a recent Wall Street Journal article, John Varley, Barclays Chief Executive, was quoted as saying: "We see big banks as diversifiers, not risk aggregators." His comments are part of a chorus of Bank CEOs now questioning various reforms that are aimed at large, complex banks.
He is plain wrong and regulators should be wary of such arguments.
Continue reading The Fallacy of Bank Diversification .
