Lehman's Bankruptcy, Financial Crisis: Who's to Blame? Are We Safer?
Friday, September 13, 2013
Five years ago Sunday, Lehman Brothers filed for bankruptcy and set off the financial crisis that threatened the entire global financial system and plunged the nation further into recession, one it's still recovering from today.
This week on Money Talking, regular contributor Rana Foroohar from Time magazine and Alan Blinder, Princeton economist and former vice chairman of the Federal Reserve, reflect on the causes of the crash and whether the financial sector is any safer..
As she writes in her cover story for this week's Time magazine, Foroohar argues "the biggest banks in the country are larger and more powerful than they were before the crisis." Blinder says a lack of regulation leading up the crisis played a key role. Today, he worries that banks could be, once again, taking on too much risk.