About

Randall S. Kroszner is the Norman R. Bobins Professor of Economics at the University of Chicago Booth School of Business. He has served as Deputy Dean for Executive Programs and has been a faculty member at Booth since 1990. His research interests include regulation of financial institutions, international financial crises, the Great Depression, monetary economics, corporate governance, debt restructuring, bankruptcy, and political economy. Kroszner previously served as a Governor of the Federal Reserve System from 2006 to 2009, where he chaired committees on Supervision and Regulation of Banking Institutions and Consumer and Community Affairs. In this capacity, he played a leading role in developing responses to the financial crisis and initiatives to improve consumer protection and disclosure, including rules related to home mortgages and credit cards. He represented the Federal Reserve on international forums such as the Financial Stability Forum and the Basel Committee on Banking Supervision, and was involved in policy formulation on a wide range of economic issues during his tenure on the President’s Council of Economic Advisers from 2001 to 2003. Kroszner has held various academic and policy positions, including director of the George J. Stigler Center, editor of the Journal of Law & Economics, and research associate of the National Bureau of Economic Research. He has been a visiting scholar at several institutions worldwide and has received numerous honors, including the Brattle Prize for a paper on managerial stock ownership. He has authored a book with Nobel laureate Robert J. Shiller titled 'Reforming U.S. Financial Markets: Reflections Before and Beyond Dodd-Frank,' which appeared on the Washington Post’s Book World political best sellers list. Kroszner is a frequent media commentator and provides advice to financial institutions, government organizations, and central banks globally.

Research topics

• Business
• Economics
• Financial system
• Finance
• Political science

Selected publications

• Hitting Stride: The 2nd Americas Alternative Finance Industry Report

  SSRN Electronic Journal · 2017-01-01 · 9 citations

  articleOpen access
  PublisherDOI

• Media Advisory: The First Symposium on Ending Too Big To Fail

  2016-01-01

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• A Review of Bank Funding Cost Differentials

  Journal of Financial Services Research · 2016-06-01 · 50 citations

  review1st authorCorresponding
  PublisherDOI

• The Development of Derivatives Clearinghouses and Recent Over-the-Counter Innovations

  2016-01-01

  article1st authorCorresponding

  This paper explores how organization and contract design has evolved to address regulatory challenges in risk management. In the early part of the century, futures exchanges responded to credit risks by developing clearinghouses that act as guarantors. The liability structure of the clearinghouse involves mutualization of risks through partial permanent integration of the exchange members. Bank clearinghouses historically involved contingent integration and risk mutualization during panics. Recent organizational innovations have allowed the risk-control benefits of the clearinghouse to be replicated in the decentralized over-the-counter derivatives markets. Credit rating agencies and advances in risk modeling are key to permitting the recent dis-integration, which has implications for the scope of public versus private regulation in banking and financial markets. WHETHER MARKET FORCES WOULD PROVIDE SUFFICIENT INCENTIVES to produce adequate self-regulation of financial institutions and markets is a hotly debated issue. This paper explores how innovations in organizational and contractual design and governance for financial institutions and markets have evolved privately to address regulatory challenges, particularly with respect to risk control and risk management. The specific focus is the origins and development of clearinghouses at futures exchanges and the recent organizational innovations that have allowed the same risk-control benefits of an organized clearinghouse to be replicated in the rapidly growing and highly decentralized over-the-counter (OTC) derivatives markets. I choose this focus for four reasons. First, the historical development of futures clearinghouses and how they address issues of risk has been largely overlooked in the

  Publisher

• Key Fragilities of the Financial System

  World Scientific Studies in International Economics · 2015-11-04

  book-chapter1st authorCorresponding

  To determine ‘where to from here’, we first have to determine exactly where we are. I very much agree with Vitor Constâncio that we are not quite sure where ‘here’ is yet, that is, we have not fully assessed the impact of the dramatic changes in regulation and supervision of the financial system since 2008…

  PublisherDOI

• Key Fragilities of the Financial System

  World Scientific Book Chapters · 2015-01-01

  article1st authorCorresponding

  To determine ‘where to from here’, we first have to determine exactly where we are. I very much agree with Vitor Constâncio that we are not quite sure where ‘here’ is yet, that is, we have not fully assessed the impact of the dramatic changes in regulation and supervision of the financial system since 2008…

  Publisher

• American Economic Association Committee on Statistics

  American Economic Review · 2014-05-01 · 2 citations

  articleOpen access
  PublisherOA PDFDOI

• Regulation and Deregulation of the U.S. Banking Industry: Causes, Consequences, and Implications for the Future

  NBER Chapters · 2014-01-01 · 54 citations

  article1st authorCorresponding
  Publisher

• Reforming U.S. Financial Markets: Reflections Before and Beyond Dodd-Frank

  MIT Press Books · 2013-01-01 · 1 citations

  article1st authorCorresponding

  Over the last few years, the financial sector has experienced its worst crisis since the 1930s. The collapse of major firms, the decline in asset values, the interruption of credit flows, the loss of confidence in firms and credit market instruments, the intervention by governments and central banks: all were extraordinary in scale and scope. In this book, leading economists Randall Kroszner and Robert Shiller discuss what the United States should do to prevent another such financial meltdown. Their discussion goes beyond the nuts and bolts of legislative and regulatory fixes to consider fundamental changes in our financial arrangements. Kroszner and Shiller offer two distinctive approaches to financial reform, with Kroszner providing a systematic analysis of regulatory gaps and Shiller addressing the broader concerns of democratizing and humanizing finance. Kroszner focuses on key areas for reform, including credit rating agencies and the mortgage securitization market. Shiller argues that reform must serve to make the full power of financial theory work for everyone--bringing the technology of finance to bear on managing risk, for example--and should acknowledge the reality of human nature. After brief discussions by four commentators, Kroszner and Shiller each offer a response to the other’s proposals, creating a fruitful dialogue between two major figures in the field.

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• Stability, growth and regulatory reform

  2012-01-01 · 3 citations

  article1st authorCorresponding

  An enormous effort has gone into banking and financial regulatory reform following the recent financial crisis. The paper is an attempt to describe some key open questions about the relation among stability, growth, and regulatory reform and then raise some concerns about overemphasis on some instruments and underemphasis on others in the ongoing reform process.

  Publisher

Frequent coauthors

• Philip E. Strahan

  National Bureau of Economic Research

  41 shared

• Jonathan A. Parker

  New School

  36 shared

• Karen E. Dynan

  36 shared

• Robert C. Feenstra

  University of California, Davis

  36 shared

• Ana Aizcorbe

  Bureau of Economic Analysis

  36 shared

• John M. Abowd

  36 shared

• Susanto Basu

  36 shared

• Raghuram G. Rajan

  Hoover Institution

  19 shared

Education

• B.A., Economics

  University of Chicago

  1985

• M.A., Public Policy

  University of Chicago

  1987

• Ph.D., Economics

  University of Chicago

  1990

Awards & honors

• Brattle Prize for best corporate finance paper in the Journa…