Lawrence J. White

Lawrence J. White

  • Member, Financial Markets Working Group
  • Arthur E. Imperatore Professor of Economics at New York University's Stern School of Business
  • Deputy Chair of the Economics Department at New York University's Stern School of Business

Lawrence J. White is Arthur E. Imperatore Professor of Economics at New York University's Stern School of Business and Deputy Chair of the Economics Department at Stern.  During 1986-1989 he was on leave to serve as Board Member, Federal Home Loan Bank Board, and during 1982-1983 he was on leave to serve as Director of the Economic Policy Office, Antitrust Division, U.S. Department of Justice.  He is currently the General Editor of The Review of Industrial Organization and Secretary-Treasurer of the Western Economic Association International.

He is the author of The Automobile Industry Since 1945 (1971); Industrial Concentration and Economic Power in Pakistan (1974); Reforming Regulation: Processes and Problems (1981); The Regulation of Air Pollutant Emissions from Motor Vehicles (1982); The Public Library in the 1980s: The Problems of Choice (1983); International Trade in Ocean Shipping Services:  The U.S. and the World (1988); The S&L Debacle: Public Policy Lessons for Bank and Thrift Regulation (1991); and articles in leading economics and law journals.

He is editor or coeditor of eleven volumes: Deregulation of the Banking and Securities Industries (1979); Mergers and Acquisitions: Current Problems in Perspective (1982); Technology and the Regulation of Financial Markets:  Securities, Futures, and Banking (1986); Private Antitrust Litigation: New Evidence, New Learning (1988); The Antitrust Revolution (1989); Bank Management and Regulation (1992); Structural Change in Banking (1993); The Antitrust Revolution: The Role of Economics, 2nd edn. (1994); The Antitrust Revolution: Economics, Competition, and Policy, 3rd edn. (1999); The Antitrust Revolution: Economics, Competition, and Policy, 4th edn. (2004); and The Antitrust Revolution: Economics, Competition, and Policy, 5th edn. (2009, forthcoming).  He was the North American Editor of The Journal of Industrial Economics, 1984-1987 and 1990-1995.

Prof. White served on the Senior Staff of the President's Council of Economic Advisers during 1978-1979, and he was Chairman of the Stern School's Department of Economics, 1990-1995. Prof. White received the B.A. from Harvard University (1964), the M.Sc. from the London School of Economics (1965), and the Ph.D. from Harvard University (1969).

POLICY BRIEFS

A Brief History of Credit Rating Agencies: How Financial Regulation Entrenched this Industry's Role in the Subprime Mortgage Debacle of 2007 - 2008 image

A Brief History of Credit Rating Agencies: How Financial Regulation Entrenched this Industry's Role in the Subprime Mortgage Debacle of 2007 - 2008

Lawrence J. White | Oct 2009
In the run-up to the financial crisis of 2007-2008, market participants relied heavily on the ratings that credit rating agencies assigned to financial instruments, including mortgage-backed securities, to determine creditworthy investment options. As mortgage holders began to default on their loans and many highly rated securities lost value, the poor quality of these ratings became apparent. An in-depth study shows that regulatory decisions over several decades, facilitated a noncompetitive credit rating industry, which in turn contributed to the financial crisis of 2007-2008.

A Flawed Regulatory Concept image

A Flawed Regulatory Concept

The Community Reinvestment Act
Lawrence J. White | Jul 2009
In "A Flawed Regulatory Concept," Lawrence J. White examines the underlying concept of the Community Reinvestment Act (CRA) and whether the CRA contributed to the financial crisis of 2007 - 2008.

Understanding Capital and Leverage in the Financial Markets Debacle of ’07–’08 image

Understanding Capital and Leverage in the Financial Markets Debacle of ’07–’08

Lawrence J. White | Feb 2009
This Mercatus on Policy paper by Prof. Lawrence J. White, explains the terms "capital" and "leverage" within the context of the current financial crisis.

TESTIMONY & COMMENTS

Congressional Testimony

Examining Proposals to Enhance the Regulation of the Credit Rating Agencies

Lawrence J. White | Aug 11, 2009
In this congressional testimony, Professor White argues that the best way approach to reining in credit rating agencies is not more regulation, but rather ending regulatory reliance on their ratings.

Congressional Testimony

The Present Condition and Future Status of Fannie Mae and Freddie Mac

Lawrence J. White | Jun 03, 2009
Currently, both Fannie Mae and Freddie Mac are deeply insolvent: The value of the assets of each company is inadequate to cover the value of that company's liabilities. This testimony explains that the hybrid model upon which the two Government Sponsored Entities are based, is broken. Hence, this testimony also…

Congressional Testimony

Roundtable to Examine Oversight of Credit Rating Agencies

Lawrence J. White | Apr 15, 2009
This statement for a roundtable of the U.S. Securities and Exchange Commission examines the changes in regulation that elevated the judgments of the credit rating agencies about the creditworthiness of bonds and some policy changes that can bring positive change going forward.

MEDIA CLIPPINGS

Bloomberg

White Interview About Fed Monetary Policy

Lawrence J. White | Aug 10, 2010
Lawrence J. White is interviewed by Bloomberg about Federal Reserve monetary policy.

The Wall Street Journal

Rewriting Fannie Mae History

Lawrence J. White | Aug 03, 2010
Lawrence J. White is quoted on the cost of Fannie and Freddie in The Wall Street Journal.

USA Today

Will new financial regulations prevent future meltdowns?

Lawrence J. White | Jun 28, 2010
Larry White is quoted on the positives and negatives of the new financial regulation bill.