CIBS Conference: DAVID LANDO Center for Financial Frictions, Copenhagen Business School (Denmark)

Facts vs. Fiction in Finance

The debate about finance has long been driven by fiction rather than facts. Media, politicians, and opinion makers often deplore the evils of banks, investment banks, rating agencies, short sellers, private equity funds, high frequency traders, subprime loans, and derivatives. There are few votes to be won by defending the virtues of the financial sector, but to properly regulate we need to understand both the virtues and risks of finance.