Balancing the banks : global lessons from the financial crisis by
Mathias Dewatripont, Jean-Charles Rochet, and Jean Tirole ; translated by Keith Tribe
This compact (only 130 pages) but powerful book by three internationally recognized European economists is well worth reading (Dewatripont and Tirole also authored the fundamental The Prudential Regulation of Banks, 1994). The authors offer a thoughtful review of the current global financial crisis and a number of considered recommendations for ameliorating the next and inevitable one. Tirole's chapter 2, "Lessons from the Crisis," which encompasses almost half the book, is especially informative. The last chapter considers ways to deal with distressed banks. Readers will benefit most if they are familiar with modern financial institutions and instruments. --Choice
