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Gary Gorton

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  1. Goldman Sachs31 min

    All about bank(panic)s and the implications for policy

    Daniel Tarullo, Thomas Hoenig, Gary Gorton, Allison Nathan, Dan Tarullo, Tom Honig

    Former Federal Reserve officials and economists Dan Tarullo, Tom Honig, and Gary Gorton analyze the Silicon Valley Bank collapse as a result of management failures, rapid interest rate hikes, and regulatory gaps created by the 2018 S-2155 rollback. These experts diverge on primary causes but converge on solutions requiring mandatory multi-scenario stress tests, higher leverage ratios, and expanded deposit insurance to address the systemic fragility of uninsured short-term debt. Their assessment warns that without these structural reforms, the mid-sized banking sector remains vulnerable to future crises driven by digital runs and the inability to absorb unexpected economic shocks.

  2. Goldman Sachs26 min

    What’s next for crypto regulations?

    Jay Clayton, Timothy Massad, Marcel Kasumovich, Gary Gorton, Alison Nathan

    Following the collapse of major industry players like FTX, former SEC Chair Jay Clayton and former CFTC Chair Timothy Massad advocate for immediate joint standards and a self-regulatory organization to address jurisdictional gaps while enforcing existing laws. This proposed framework aims to balance innovation with investor protection by establishing common rules for asset custody and fraud prevention, despite ongoing debate over whether the current regulatory environment suffers from a lack of clarity or inadequate federal oversight. While experts agree on the resilience of underlying blockchain technology, consensus is shifting toward the imminent introduction of stablecoin regulations and potential Central Bank Digital Currencies to mitigate systemic financial risks.