The question of whether well-connected banks got special treatment during the financial crisis is the focus of a study, which has been in limited circulation in academic circles in recent weeks, by a group of authors that includes the eminent MIT economists Daron Acemoglu and Simon Johnson, along with Amir Kermani, James Kwok, and Todd Mitton. (Johnson and Kwok are longtime and vocal critics of the finance industry.) It won’t shock an already jaded public to learn that having friends in high places seems to have helped a lot.
Read Full Article »
