(2012-03-20) Credit Crisis Bank Leverage Theory Challenged

Although our understanding of what instigated the 2008 global financial crisis (Credit Crisis 2008) remains at best incomplete, there are a few widely agreed upon contributing factors. One of them is a 2004 rule change by the U.S. Securities and Exchange Commission (SEC) that allowed investment banks to load up on Leverage... There’s just one problem with this story line: It’s not true.