Banking: Successes and Failures - From Goldsmiths to Modern Regulation

Explore the evolution and significance of banking institutions in this 72-minute lecture from Yale University's Financial Markets course. Delve into the historical development of banks from primitive goldsmith operations to modern commercial entities. Understand how banks address key economic issues like adverse selection, moral hazard, and liquidity. Examine the mechanics of bank operations, including fractional reserve banking and profit generation through borrowing and lending practices. Analyze the challenges faced by banks throughout history, such as bank runs and insolvency, and learn about government regulations and support systems designed to maintain public trust in banking institutions. Investigate the role of rating agencies in the financial system and gain insights into the subprime crisis in the U.S. and Europe. This comprehensive lecture provides a thorough overview of banking successes and failures, offering valuable knowledge for anyone interested in financial markets and economic history.

- Chapter 1. On Andrew Redleaf: Reaping Rewards from Opportunities
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- Chapter 2. The Origin of Banks, from Goldsmiths to Commercial Banks
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- Chapter 3. Why Banks Exist: On Adverse Selection, Moral Hazard and Liquidity
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- Chapter 4. Rating Agencies: Do They Work?
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- Chapter 5. The Ongoing Fragility of Banks and Structures of Bank Regulation
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- Chapter 6. The Subprime Crisis in the U.S. and in Europe
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