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How to make a bank raise equityigmforum editor - February 8th, 2010
By Oliver Hart and Luigi Zingales In the struggle to identify how to avoid a repeat of last year’s financi... Read article>
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Started by faculty members from the Initiative on Global Markets at the University of Chicago Booth School of Business Global markets have generated confusion among policymakers and the public. The IGM promotes sound analysis of how these markets work, their effects, and the way they interact with policies and institutions. 
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Douglas W. Diamond and Raghuram G. Rajan
FT.com; April 20th, 2009
Why are banks so reluctant to lend? One possibility is that they worry about borrower credit risk, though worries need to be extreme to justify the substantial drop in term lending. A second is that they may worry about having enough liquidity of their own, if their creditors demand funds. Yet, the many Federal Reserve facilities that have been opened should assuage these concerns.