Stress Test: Reflections on Financial Crises e mais milhares de eBooks estão .. The book reaches its climax with the stress tests backed by promises of capital. Start by marking “Stress Test: Reflections on Financial Crises” as Want to Read: Timothy Geithner has the unusual habit of showing up in the middle of international crises. He wrote Stress Test: Reflections on Financial Crises as a distinguished fellow at the Council on Foreign. A Financial Times Best Book of “He's written a really good book — we might as well get that out of the way, as so much else about Timothy F. Geithner.
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In STRESS TEST former Treasury Secretary TIMOTHY GEITHNER writes the Tim's book will forever be the definitive work on what causes financial panics and . Stress Test: Reflections on Financial Crises is a memoir by former United States Secretary of the Treasury Timothy Geithner, written as an account of the. Praise. A Financial Times Best Book of “He's written a really good book — we might as well get that out of the way, as so much else about Timothy F.
He describes the behavior of panics with the example from It's a Wonderful Life - a lack of confidence in banks and other institutions leads to shareholders panicking and removing all of their investment. Due to the nature of banks, they cannot necessarily survive these bank runs, and if they collapse, the lines of credit are cut off.
Now the Roosevelt administration did institute deposit insurance under the FDIC program to protect consumers after the Great Depression. The problem is that many of these savings were held in 'shadow banks', or other institutions which functioned like banks but did not have the protections of the federal government. The 'stress test' of the title was one of his inventions, and a major factor in restoring confidence to the banks. This involved running a detailed study of a bank's assets and liabilities, and seeing whether it could survive a major bank run or crisis using a series of simulated variables.
Although many suspected the truth of these tests, most seem to have worked, and the 'stress test' is now a useful tool for evaluating banks in crisis worldwide.
This is the reasoning he gives for not allowing the big investment banks to fail. He believes they honestly were too big to fail - if they did, credit could collapse and so would investment holdings and consumer confidence worldwide. As such, he also vehemently denies the idea of 'Old Testament vengeance' to punish any of the head officials of the banks, saying that most were too ignorant of their circumstances and the complexity of the market to know what was going on.
Many will contest this, of course. Although he does at least have the decency to mark a late protest against overeager executive compensation and its own risk for moral hazard - he even names names.
Being at the center of a storm this large is an exceedingly thankless job. He does talk about the lack of privacy accorded to his family, and the toll it took on his family life. He wanted to resign as early as , but the president would have none of it. Find your local bookstore at booksellers. Our Lists.
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He virtually excoriates himself for some of the mistakes he made. He does that in painful detail. I suspect that this is, in part at least, the influence of his wife Carole, who urged him to be totally forthcoming.
Another thing that struck me was Geithner's recounting of testifying before Congress. He did that many times. In perhaps the worst case, Eric Cantor in Geithner's view tried to manipulate negotiations in ways that might improve his Cantor's chances to gain the Speakership. Well, for starters it leaves me with a great deal of respect and admiration for Geithner and his team. Secondly, it leads me to think that there has been a lot printed about the Great Recession, Bear Stearns, Lehman Brothers, Citi, and BoA, but not much of what has been printed recounts what transpired as well as thus memoir does.
Finally, it is worth noting that the Epilogue, "Reflections on Financial Crises," is a superb assessment of lessons learned and a blueprint for what might be done in the future. I think this book ought to be mandatory reading for every member of Congress. But, even that is problematic because I think only about a third of them might begin to understand it. Will leave you with this quotation which might give you a sense of the book and the man: I witnessed some appalling behavior in the political arena—selfishness and grandstanding, shameless hypocrisy and mindless partisanship.
At times, the failures of our political system imposed tragic constraints on our ability to make the crisis less damaging and the recovery stronger. And yet, at the moments of most extreme peril, the system worked. Reflections on Financial Crises Here's what you'll not find in this book: The personal philosophies, principles, and policies Geithner used to run a major cabinet agency and the New York Federal Reserve prior to that.
There is very little about the advice he gleaned from others, although Robert Rubin and Larry Summers were strong influences and possibly mentors. His economics is pretty rudimentary, mainly just referring to simple Keynesian policies in the book.
The strength of the boo Stress Test: The strength of the book is the timeline of the financial crisis from the view of the NY Fed and Treasury.
I have read multiple books and seen multiple documentaries of the financial crisis and I'm sure experts will one day compare the books and their sequences of the events and find contradictions, but I felt Geithner's take was pretty thorough and captured the stress on policymakers quite well.
The Fed's stress test implemented, with the backing of Treasury, ended up being enormously important in shoring up confidence in U. That was one policy triumph that Geithner feels was underrated. He details the frustrations of TARP, how difficult it was to walk the center line when being attacked by the right and left. He has little positive to say about the Republican party and their response to the crisis, although Boehner comes across in the end as a sensible moderate hemmed in by the Tea Party.
He developed a broad world view and studied in China, and later leveraged that experience to land a job in the international wing of the U. Treasury Department and later the IMF. This gave him invaluable working experience in the Asian financial crisis, as well as the Mexican peso crisis.
It also allowed him to forge some understanding between himself and President Obama that appealed to the President-elect when selecting Geithner for Treasury.
Geithner opens the book essentially with an apology for his horrible confirmation testimony during Congressional hearings and his horrible roll-out of his plan to stress-test the banks. Behind the scenes, he tells of staffers working late nights on speech drafts, but he seems oddly detached and uninvolved in this process.
There is very little info on how he managed his staff. Geithner felt a "crushing guilt" for making the President look bad and embarrassing his family. His wife is apparently a counselor and loathed Geithner's political role and the long hours he spent away from home.
She opposed him accepting the nomination as Treasury Secretary, and President Obama had to personally assuage her doubts when he decided to keep him on after re-election. He has nothing but praise for Obama from start to finish, which I find oddly contrasting to other memoirs I read where they at least find some fault in their former boss. He is often awkwardly included in Obama press conferences held for political purposes-- to denounce bonuses to CEOs, for example-- just to stand there and be seen as a silent supporter.
I think he regrets those moments, but saw them as part of his job as a political appointee. He expresses his frustration and bewilderment at watching Europe implode at the time the U. Memorable one-liners from Sarkozy highlight his dealings with European leaders. He was very supportive of Dodd-Frank and details the political perils of passing it when the Left started overreaching.
He was also broadly supportive of Elizabeth Warren and defends himself and others in the Clinton White House for their fight against Brooksley Born's crusade for more derivatives regulation she was right on principle, but wrong on proper policy execution.
Time and again, he has to explain to others that he did not come from the financial industry. He personally had a "dim" view of finance, or at least his ability to work in the Wall Street environment. He was influenced by Michael Lewis' Liar's Poker. The few books he mentions are about the only insight into what he was thinking or learning, which does not appear to be deep. He includes some some general thoughts on financial regulation and dealing with a financial crisis.
I give this book 3. A must-read on the financial crisis and period of ' This book can be summed up in one word: I skimmed the last few chapters, but there was nothing there of note. Geithner does not have the cojones to even give some sort of speculative analysis. That is a pity. I would have hoped he would have some insights to show, but he does not. I learned almost nothing about the financial crisis that I had not already understood from various other books Even Andrew Ross Sorkin's celebrity-rag style tell-all is chock f This book can be summed up in one word: I learned almost nothing about the financial crisis that I had not already understood from various other books Even Andrew Ross Sorkin's celebrity-rag style tell-all is chock full of information, which I tried my best to falsify and was impressed that it stood up to fact-checking scrutiny.
Instead, all I got was hindsight laden rationalization of Geithner's actions. I guess I'm just not the target market for this book.
Look, I get it. I get why the administration did what it had to. I get that the various agencies, Treasury in particular, had very limited agency and had to act quickly. They were constrained all around them - constrained by the most brain dead Congress in fifty years, constrained by having to deal with a monumental election cycle, constrained by the very thick fog of war, constrained by limits on their own agency.
It is my understanding that many of their actions were well past the "questionably legal", and this is coming from someone who is well on their side, and thinks their actions were indeed necessary! So I guess I didn't need to read a book telling me this in painstaking whine after whine. Consider me already sold on the thesis. But I am disappointed that there is literally nothing more in this book apart from the world's most tedious apologia.
Regardless of whether or not you agree with Geithner's decisions, this was an interesting telling of the events before, during and after the "meltdown".
He defends some of his choices, while with others he admits fault. For a book about finance - a relatively LONG book about finance - it was quite engaging. Jun 11, John Frech rated it it was amazing. So, I was delighted to have a chance to listen to Mr. Geithner's take on the financial crisis of Second, I heard Ky Rysdall interview Mr. Geithner on Marketplace before I read the book and I was very impressed with Mr. Geithner's recollections of his roles in , and his concerns about the current state of the financial ecosystem.
After I heard the interview, I immediately checked the book out of the library and started reading.
I was very impressed with this book. It is a detailed memoir about the events leading up to the great Recession and the repairs to the financial system that were attempted in President Obama's first term. Geithner does a fantastic job of setting the background and the players as he tells the story about collossal failures of Bear Sterns, WaMU, AIG and Lehman Brothers - just to name a few.
He also tackles the policy issues that evolved from these events. And, he is very clear about how close the world came to an economic and financial meltdown during those years. I must admit that I had an easier time reading his memoir because I was very familiar with the financial issues that very nearly led to the collapse of the international financial system.
Those readers that are not as familiar with financial derivatives, risk management and other banking terms may have a tougher go at this. Geithner does provide a glossary of terms. However, it is one thing to say that one can study Finance, it is another to say one has experience with Finance.
I also came to understand another factor that fueled the Tea Party movement, which gave rise to President Geithner ends the book with some lessons learned and prescriptions for dealing with the next financial crisis. I do hope that financial leaders will take a moment to read at least the last 2 chaptes of this book before the next crisis comes.
As for the rest of us, read this book! Sep 11, Mike rated it liked it. Didn't expect the book to be as political as it was and I was hoping for more of just an insider perspective on the crisis. I did get that which was enjoyable but it felt like a lot of chaff to get through.
It did give me more respect for Geithner although it felt like he could have left out some of the name dropping and negativity that was added in gratuitously.
Dec 24, Carl rated it liked it Shelves: What he does claim to be tho, without hedging his bet, it a pragmatist whose core motto is "any plan beats no plan". First off, Geithner makes his case of why he was the right guy in the right place. In his view, only a committed pragmatist could have pulled it off. Thus, the bailouts, the absence of prosecutions, and the emphasis on bailing out the fat cats. In a credit crisis, faith in the system must be maintained.
Also interesting is Geithner's portrayal of the personalities and issues. Most of them get passing grades, some much better, some much worse.
Krugman concedes that Geithner was effective in limiting the damage but he faults his policies for their failure to extend support to the little guy, the guy whose home was foreclosed, while protecting the interests of the oligarchs.
The Great Recession and financial panic of has a lot of myths and stories surrounding it concerning what the government did or didn't do, what it should've done and shouldn't have done, and the motives of those working behind the scenes.
Former Secretary of the Treasury Timothy Geithner is one of those lighting rod figures from the crisis who, because of his relative anonymity prior to the crisis, is often misunderstood or caricatured. In this book, Sec. Geithner not only dispels the m The Great Recession and financial panic of has a lot of myths and stories surrounding it concerning what the government did or didn't do, what it should've done and shouldn't have done, and the motives of those working behind the scenes.
Geithner not only dispels the myths about his own background, but also provides a unique insight and perspective on the panic from one of the only two people in high government who was there from beginning to end Fed chairman Ben Bernanke being the other one.
But his story, and his experiences with financial panics, doesn't start in , but rather starts with his upbringing in a family that was involved in international development and finances from when he was very young, always moving from one country to another and spending very little time in America. From there, it moves on to his time as a civil servant in the Treasury department's international wing, dealing with the crises brought on the by the Asian financial panics of the s and eventual rising to be Assistant Secretary of the Treasury in charge of the international branch.
From those times Mr. Geithner picks up a lot of invaluable experience in financial panics, what makes them better, and what makes them worse. From there he makes the surprising leap to head of the Federal Reserve Bank of New York, the most powerful of the regional Federal Reserve Boards in the country. And that is where the main story begins as Mr. Geithner describes the events that led to the panic, the actions he took as FRBNY chair and then Treasury Secretary, why they took them, and why they were necessary even if they were both unpopular and counterintuitive.
The book reaches its climax with the stress tests backed by promises of capital injections for those banks the tests deemed were in need of them.
Once the results of the test are released in the spring of a certain measure of calm enters the markets and the last chapters feel like a denouement as he deals with the Eurozone crisis and the toxic politics of Washington following the ascendancy of the Tea Party in What is surprising is how in the first half of the book Mr.
Geithner seems to undersell himself, not out of a sense of humility, but because he genuinely seemed to believe that there were other people better or more knowledgeable than him. From my perspective, it seems like a no-brainer that Pres. Obama tapped him to be Treasury Secretary, even if he was a terrible salesman a flaw that he readily, even jokingly, admits to being. What is also great about this book is how much value it has beyond being another account of the financial crisis.
He does a great job of explaining why the unpopular decisions the Fed, the FDIC, and the Treasury took were necessary to save the economy, even if he falls into the trap of using too much of the jargon of Wall St. I believe this book has value not only as an account of this financial crisis, but as a guide to how to handle future financial, indeed any, crisis in the future.
As Mr. Geithner is fond of saying, a plan beats no plan. I highly recommend this book to anyone interested in the true story behind the financial crisis and the Great Recession of Well,I'm on a binge to catch myself up with economics, mostly because as an educationist I think we're very confused about usage for "human capital," so-called.
Which by my read is no great thing to be. This guy is way wordier than even I am, but in an opposite direction. There is nothin Well,I'm on a binge to catch myself up with economics, mostly because as an educationist I think we're very confused about usage for "human capital," so-called. There is nothing compact here, but nothing too dense either. There's lots of repetition of the sort you'd think a good editor could take care of, but it's all in service to an engaging kind of earnest.
Reading Geithner, I felt plenty foolish to have thought anything at all about the crash when it was happening and I was constructing my own narrative based on what people lots smarter than I were saying in the media.
I wouldn't have wanted to know! I couldn't have known. Earnest here is in service to making you, the reader, truly believe that there is nothing really special about Geithner's qualifications or preparation. He presents himself as the beneficiary of luck, who remains strangely without the extravagant ambitions of those he was called on to bring in-line.
That would be unnerving, given the enormity of the responsibilities which he took on, except that I found it reassuring. Ordinary unambitious earnest intelligence which eschews both claims to genius and judgements against those who might make that claim for themselves most prominently, Larry Summers or even against those who do have extravagant personal ambitions - earnest ordinary intelligence seems to have claimed the day.
We must all be grateful to Tim Geithner - I know I am - as the adult in the room who did what had to be done to the extent that he could do it. I'm convinced. I'm also grateful that he took the time and care to tell us what had happened, even without editorial intervention! That's quite a risk he took! I'm not sure, but I think he's moving on toward cashing in, which is too bad even if it's good for his family of long-suffering Jobs, by his telling.
I'm sure he's earned it. It has been very difficult for many of us not to be judgemental about Obama as he goes off the rails on education, surveillance and dronish projections of imperial power, but my judgment is now tempered, and for that I'm grateful too.
It seems there's some earnest to our President too, judging by this book. What remains for me and you is a responsibility earnestly to engage in politics at our own level toward a society we actually want to call our own.
Geithner has helped to keep that possibility open to us. We had no idea. This book took forever and a day to read. At first, it started lightly with Geithner's experience in the Treasury literally working his way up from being a "noisy scribe" to dealing with the economic panics in Asia in the 90s to eventually being dragged to Secretary of the Treasury.
For the sake of this review, I'm going to focus more on the style and overall content of the book, since I'd hate to dwell on all of the nuances.
This book is all you need to understand and navigate the financial crisis and the initiatives taken to alleviate it newsflash: Even better, the epilogue has a nice "summary" of the amount of recovery that has taken place in the US economy and the world economy mainly Europe just in case you needed brought back from the populist mentality of Wall Street versus Main Street to earth.
In other good news, the book is speckled with a little bit about his personal life, which is incredibly candid and so honest you would almost think twice about him actually serving in Washington. The book also does an excellent job of following a chronological timeline of his career and the crisis and even the aftermath. Did I actually read all pages?
Of course not, because a majority of the epilogue was a collection of economic jargon Geithner used. If you read this without any economics knowledge from college, bless you. You are one of the few. I have had a mid-level econ class and I struggled. Geithener unfortunately gets so caught up in his own excitement of economics that he forgets this book isn't being sold and marketed to economists. It's basically an economics textbook, probably one with the title "Crisis Management.
I had to force myself to finish, which is never a good sign. Yes, I enjoyed it, but it was a tough one. I bought this book under the assumption that it would be an autobiography detailing his life and skimming the Great Recession.
Quite the opposite. Overall, this book was decent. I loved the quips about the populist Republican establishments, even though you can clearly tell he still holds true to his early registration as an Independent because he states the facts, doesn't care about politics, and served a higher good. This work symbolizes the attitude and dedication every public service member should have and also warns what can happen without such a mentality. Uncertainty is also at the heart of all financial crises.
Dec 15, "Cyril' David rated it really liked it. Well every once in a while you read a book that makes you question things you knew as fact! Secretary Geithner's generally fair and honest explanation albeit with a few too many gratuitous insults aimed at mostly Republicans has me reevaluating my former objections to both President Bush's and President Obama's handling of the economic crisis.
The last chapters dealing with the aftermath, did, in my opinion, become a bit more partisan and unbalanced.