View from the Top: Rodgin Cohen, Sullivan & Cromwell (Financial Times)

April 29, 2010
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Mr. Cohen was interviewed by the Financial Times on the causes of the financial crisis and recent financial reform proposals. He discussed what he believes are the three principal causes of the financial crisis: “massive overleveraging in every phase” (including financial institutions, other businesses, consumers and governments), that “too many financial institutions took too much risk” and that “too much of our financial system was either unregulated or under-regulated.” He also spoke about domestic and international reform proposals. “The adoption of financial reform legislation would send a very positive signal to the markets – that signal being that we have the political will to deal with our problems,” he said. In addition, Mr. Cohen talked about rating agencies and derivatives, and their relationship to the financial crisis and reform.