Sean Vanatta on Credit Cards
Peoples & Things
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Evolution of Risk Management and Public Investment
Over time, the supervision and oversight of the financial system have evolved as private bankers and public officials negotiate who bears the residual risk. Initially, this negotiation process occurred until the New Deal, where the federal government took on the risk of the financial system. Subsequently, policymakers began expanding the responsibilities of banking institutions to include anti-discrimination policies and consumer protection. This evolution spanned from 1789 to the 1980s. Similarly, public pension systems transitioned from investing in public infrastructure to stocks and bonds, moving away from financing projects like schools and roads to more diversified investment options.
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