IDEAS home Printed from
   My bibliography  Save this article

Thoughts on "The Squam Lake Report": Reengineering the Financial System to Better Withstand Extreme Volatility


  • Kenneth A. Posner


The most important contributions of "The Squam Lake Report" are its analysis and recommendations not for eliminating the possibility of future crises, but for enabling the financial system to better withstand the bouts of volatility that are a natural outcome of market forces. In this regard, the Report's most promising proposal is its prescription that systemically important financial firms issue "contingent capital" that converts from debt to equity when a financial firm's solvency is at risk. Copyright Copyright (c) 2010 Morgan Stanley.

Suggested Citation

  • Kenneth A. Posner, 2010. "Thoughts on "The Squam Lake Report": Reengineering the Financial System to Better Withstand Extreme Volatility," Journal of Applied Corporate Finance, Morgan Stanley, vol. 22(3), pages 34-39.
  • Handle: RePEc:bla:jacrfn:v:22:y:2010:i:3:p:34-39

    Download full text from publisher

    File URL:
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Berg, Tobias & Kaserer, Christoph, 2015. "Does contingent capital induce excessive risk-taking?," Journal of Financial Intermediation, Elsevier, vol. 24(3), pages 356-385.
    2. Berg, Tobias & Kaserer, Christoph, 2011. "Convert-to-Surrender Bonds: A Proposal of How to Reduce Risk-Taking Incentives in the Banking System," Annual Conference 2011 (Frankfurt, Main): The Order of the World Economy - Lessons from the Crisis 48737, Verein für Socialpolitik / German Economic Association.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jacrfn:v:22:y:2010:i:3:p:34-39. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.