Ex-Fed Official Blinder on Unheeded Lessons of the Financial Crisis

March 7, 2014

By Sarah Todd, American Banker

Former Federal Reserve Vice Chairman Alan Blinder believes that multiple problems in the financial system have gone unaddressed, though more than five years have passed since the meltdown.

"Attention spans are short in the public and in the industry," Blinder said at a public lecture at the Museum of American Finance in New York Tuesday evening. His criticisms of the persistence of "perverse compensation systems" and "unduly complex" financial tools echoed points from his 2013 book, After the Music Stopped: The Financial Crisis, the Response, and the Work Ahead. But if the world is as easily distracted as the Princeton economist claims, certain arguments bear repetition.

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