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November 18, 2008

Podcast on the Wall Street Bail Out

An interesting podcast titled "Bailing Out Wall Street" here based on a panel discussion organized by the Commonwealth Club. I especially liked the comments of Prof. Jonathan Berk from the Stanford Univ. who speaks about the long term "moral hazard" damage that the bailouts have caused. He says the inevitable regulations that follow the crisis would do better to focus on providing the right incentives rather than trying to "outsmart" investment bankers. For instance, if Lehman Brothers and other mega IB firms were still partnerships (which meant unlimited liability for the partners), it would have ensured far better self regulation by their owners.

Arun Natarajan is the Founder & CEO of Venture Intelligence, the leading provider of information and networking services to the private equity and venture capital ecosystem in India. View free samples of Venture Intelligence newsletters and reports. Email the author at