The Unintended Consequences of Banking Regulation

The video discusses the new financial environment and its unintended consequences, focusing on the fixed income markets where bank retrenchment has concentrated risk. It highlights liquidity issues and increased trading friction due to regulatory measures. The challenges of recruiting for big banks are explored, with a shift in focus to the buy side. The discussion concludes with the impact of regulation on private markets and the need for simpler capital requirements.

What potential solutions are suggested for simplifying financial regulations?

In what ways have private markets changed in response to regulatory pressures?