WILLIAM ISAAC’S PUBLISHED WORK

Bill Isaac has authored hundreds of articles in top publications and has frequently testified before Congress.

RECENT PUBLISHED WORK

columns from William Isaac in top financial publications

Do Not Rush Reforms

Do Not Rush Reforms

June 30, 2009

By William Isaac, Published by American Banker

The Obama administration, in unveiling its financial regulatory reform proposals, identified three factors contributing to the financial crisis: illdefined regulatory responsibility for systemic risks, inadequate supervision of large institutions, and inadequate consumer protection.

Continue reading →

How to Regulate Sytematic Risk

How to Regulate Sytematic Risk

June 8, 2009

By William Isaac, Published by American Banker

It is widely believed that the U.S. financial system needs a “systemic risk” regulator to help prevent future financial crises. The debate is centered not on whether we should have such a regulator but which agency should be anointed and what powers it should have.

Continue reading →

Public Stress Test Causes Stress

Public Stress Test Causes Stress

May 6, 2009

By William Isaac, Published by American Banker

The government’s program to conduct stress tests on the 19 largest banks has led to endless media hype and considerable stress for banks. Professional bank regulators and bank executives have been stupefied about the program since it was announced by Treasury in February.

Continue reading →

Trillions later, and it still isn’t working

Trillions later, and it still isn’t working

March 2, 2009

By William Isaac, Published by Investment Dealer’s Digest Magazine

Congress was badly divided last September on the Treasury bailout plan to purchase $700 billion in troubled assets from banks, and rightly so. Some six months and trillions of dollars later, our attempts to stabilize the financial system and stimulate the economy have borne little fruit. It’s time to consider alternatives to spending more trillions we don’t have.

Continue reading →

We need hope, not toxic assets

We need hope, not toxic assets

March 1, 2009

By William Isaac, Published by The Chicago Tribune

Former Treasury Secretary Henry Paulson rushed to Capitol Hill last fall to request $700 billion in emergency funding to purchase “toxic” assets (e.g., mortgage-backed securities) from banks. He got his $700 billion, no questions asked, but then decided to invest most of the money in bank capital instead of bad loans. That midcourse correction was one of the best decisions made during the past six months.

Continue reading →

Bank Nationalization Isn’t the Answer

Bank Nationalization Isn’t the Answer

February 24, 2009

By William Isaac, Published by The Wall Street Journal

People who should know better have been speculating publicly that the government might need to nationalize our largest banks. This irresponsible chatter is causing tremendous turmoil in financial markets. The Obama administration needs to make clear immediately that nationalization — government seizing control of ownership and operations of a company — is not a viable option.

Continue reading →

Bad bank, bad idea

Bad bank, bad idea

February 4, 2009

By William Isaac, Published by The Deal Magazine

Washington has been all atwitter the past couple of weeks about a “new” plan to purchase toxic assets from banks.

In reality, the plan is an old idea that should be rejected.

A bad-bank plan will be a horrendous waste of taxpayer money. Banks won’t sell bad loans except at a premium over what they can get in a private sector sale.

Continue reading →

Providing Relief from the Crisis

Providing Relief from the Crisis

February 1, 2009

By William Isaac, Published by the American Spectator Magazine

The President-elect should immediately call upon the Securities and Exchange Commission to suspend mark-to-market accounting (specifically SFAS 157, adopted in 2006). It’s indisputable that this accounting rule has senselessly destroyed hundreds of billions of dollars of bank capital, is a major cause of the world wide financial crisis, and is crippling the economy.

Continue reading →