Sheila Bair, former FDIC chief, on Secretary Geithner
By Garett Jones
Tim seemed to view his job as protecting Citigroup from me, when he should have been worried about protecting the taxpayers from Citi….
That’s from her new book, profiled in the Financial Times.
You already know that countries whose banking sectors are largely government-owned have worse economic performance, but here’s the best recent paper on the topic. From the abstract:
This evidence supports “political” theories of the effects of government ownershipof firms.
They use government-owned bank shares as a key measure. Unfortunately, the authors don’t separate out de facto from de jure government ownership. In expected value terms, aren’t all our biggest banks government owned?