David Leonhardt’s suggestions for reregulating the banks and shadow banks are commendable. However, I would like to express a word of caution based on a concern that the problems that led to the economic meltdown have been only partly addressed. What about some workable suggestions for cleaning up the detritus in the form of the hundreds of billions of dollars in toxic assets that remain on the balance sheets of the 19 stress-tested bank holding companies, which could cause inestimable economic damage in the event of a double-dip recession?
MORLEY GORSKY
Toronto
Referring to the fact that regulators often overlook signs of excess risk taking, Leonhardt makes the point that “in a way, this issue is more about human nature than about politics.” Overlooked in his discussion, however, are differences in human nature between the sexes. Since the crisis hit in September 2008, there has been wide notice taken of the fact that those responsible were, with no notable exceptions, men. The role of testosterone-driven risk taking for status and power is perhaps the major cause of these devastating crises.
Among the long-term solutions that ought to be considered is requiring gender balance on regulatory boards, including all Federal Reserve boards. Illinois and Iowa have enacted Gender Balanced Appointments Acts; why can’t similar laws be enacted on the federal level? Congress could also go a step further, following the lead of Norway and Spain, and require gender-balanced membership on corporate boards. Finally, Leonhardt mentioned that Canada has avoided much of the crisis’s aftershocks and has a female chief financial regulator. It is also worth noting that no woman has ever been appointed to U.S. Treasury secretary or chairwoman of the Federal Reserve.
MARC BEALLOR
Brooklyn
Letters – nytimes.com
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