A one-eyed, socially awkward, physician-turned-hedge fund manager who predicted and profited from the subprime crash: If that's not a Michael Lewis story, what is? Read the Vanity Fair excerpt from Lewis's forthcoming book. Goldman Sachs, inevitably, pops up in the story; Felix Salmon over at Reuters has Goldman's response to Lewis's article.
The number two guy at the Fed is stepping down in June. Donald Kohn's departure will leave President Obama with three seats to fill on the Fed's seven-member Board of Governors. (The Senate has to confirm the appointments.) The Times looks at the Fed's dual role of controlling inflation while promoting full employment, and how the new appointments might shift the balance between those goals. Bloomberg speculates on who the new governors might be.
What powers should the government have to wind down failing financial firms? Current law lets the FDIC take over failing banks, but not other kinds of financial firms. This morning's WSJ looks at the finance-regulation bill being hashed out in the Senate, which would create a new type of bankruptcy for non-bank financial firms. The bill would also create a new consumer-protection division within the Federal Reserve. That would be something of a compromise; many Dems have been pushing for a new, independent agency for consumer protection.