The financial crisis following the collapse of the housing market in 2007 arose because of debt and over-leverage, according to Andrew Ross Sorkin, author of “Too Big To Fail: The Inside Story of How Wall Street and Washington Fought to Save the Financial System – and Themselves” and a mergers and acquisitions reporter with the New York Times.
Although the Dodd-Frank Bill, passed by federal officials with the intent of preventing future financial crises, would not have prevented the financial crisis, it would likely have softened its effects.
“(Dodd-Frank) sort of nibbles around the edges and it would have made things less bad,” Sorkin said. “Will we be able to avoid future crises? I think it will mitigate future crises.”
Sorkin spoke last week at the Spring Leadership Luncheon presented by the Wauwatosa Public Library Foundation. Before the event, he spoke with BizTimes reporter Eric Decker.
Sorkin also believes that the US economy is in better shape than many give it credit for. Turning to his coverage of the mergers and acquisitions market, Sorkin said the recent increase in deal-making activity is a likely sign of economic health.
“Deal making is a barometer of confidence,” he said.
For more, see a video interview with Sorkin below.
