05-01-2013 Book Club: The Financial Crisis and the Free Market Cure By John Allison

Wednesday, May 1st, 2013

Chairs:  Henry To, CFA and Anthony Mak, CFA

John Allison—former Chairman and CEO of BB&T Corporation (and current CEO of the Cato Institute—presents an unconventional view and solution to the age-old dilemma that continues to haunt the financial system: To regulate or not? If so, how much, and how to go about it? In his book The Financial Crisis and the Free Market Cure: Why Pure Capitalism is the World Economy’s Only Hope, Allison launches a scathing attack on U.S. politicians and regulators. Having held leadership positions at one of the largest regional banks from 1987 to 2010, Allison has gained an insider’s view on the many unintended (bad) consequences of overzealous and (in his words) incompetent regulators, as well as the fundamental misalignments of the interests of bureaucrats (to keep their jobs) and those of bankers, entrepreneurs, and U.S. society at large.

Filled with personal stories, Allison makes a strong case of how U.S. and global regulators have hijacked our financial system with stringent rules that are impossible and costly to follow—and more important, have only served to destroy capital over the long-run. Instead, Allison advocates a traditional, principles-based, system that rely more on human judgment and common sense. Allison follows the traditional JP Morgan Rule of lending based on a person’s character; not the person’s credit score. On a personal level, this idea seems quaint but attractive, especially in today’s world of “Big Data” and where everyone is treated as just a number.

Is the “Free Market Cure” the solution? You be the judge. But one thing is undeniable: We live in a dysfunctional system that lacks common sense and a human touch. It is up to us to fix it—preferably over wine and cheese at the CFA LA Society’s office at the Biltmore. Please join us on May 1st for a stimulating and perhaps controversial discussion on John Allison’s book. Having read it beforehand is not a requirement. Please just come with an open mind. There will also be networking sessions before and after our book discussion. We hope to see you soon.

*The author will not be in attendance

As a participant in the CFA Institute Approved-Provider Program, the
CFA Society of Los Angeles has determined that this program qualifies
for 1 credit hours. If you are a CFA Institute member, CE credit for
your participation in this program will be automatically recorded in your CE Diary.

Registration Links (Must register to attend)
CFALA Members: $10.00 (place cursor on amount for link)
Non-members: $15.00 (place cursor on amount for link)

Time: 5:30pm: check-in and reception with wine and cheese
           6:00pm: book discussion

Location: Biltmore Court
                  520 S. Grand Ave., Suite 370
                  Los Angeles, CA 90071

Parking: Hotel Valet Parking: $20.00
                Self-Parking at Pershing Square (located directly across the street on Olive St.): $10.00

Dress Code: Business Casual


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