Finance & History

Why do banks fail? What are the characteristics of banks that fail? Are these consistently the same over the course of history? Emil Verner (MIT) says yes, there are some commonalities all US banks that failed in the last 160 years share; moreover he claims that bank failures are quite predictable. Why then don't we prevent most bank failures? Or shouldn't we after all? Emil Verner (MIT) in conversation with Carmen Hofmann (eabh) The conversation draws on a paper jointly written with Sergio Correia (Federal Reserve System) and Stephan Luck (Federal Reserve Bank of New York).

How to regulate banks effectively? Alexander Nützenadel (Humboldt University Berlin) makes a case for banking regulation being a cyclical affair. He and his colleagues started out to do the first quantitative analysis of banking supervision in the 20th century. Alexander and Carmen Hofmann (eabh) discuss his findings during what he calls the longest regulatory cycle in history (1930 -1970). Are there lessons to be learned for today's regulators ? For instance how to deal with algorithmic trading or passive asset management? Tune in to be informed! #eabhPodcast

In this episode Maylis Avaro (Penn University) and Carmen Hofmann (eabh) discuss the international role of Sterling during the Bretton Woods era. Maylis claims that after 1945, the collective interests of the members of the sterling zone (stability of trade, free flow of capital, freer trade, access to London markets) were little compared to the cost of having UK authorities using the currency as a means of political domination. Tune in and listen to a fascinating story of currency, empire & independence! #eabhPodcast

In this episode Maylis Avaro (Penn University) and Carmen Hofmann (eabh) discuss the international role of Sterling during the Bretton Woods era. Maylis claims that after 1945, the collective interests of the members of the sterling zone (stability of trade, free flow of capital, freer trade, access to London markets) were little compared to the cost of having UK authorities using the currency as a means of political domination. Tune in and listen to a fascinating story of currency, empire & independence! #eabhPodcast

Volker Berghahn (Columbia) & Carmen Hofmann (eabh) talk about European reconstruction after World War I, World War II and the Ukrainian War of today. Why was the reconstruction effort after 1945 so much more successful than the endeavours in the interwar years? How should global aid be given? Does private or public money serve the matter better? Which should come first? Loans or grants? Do we need peace to rebuild? Who should guarantee for the money given? Who will profit? Volker and Carmen discuss these questions and try to look closely at the roadmap history could provide for Ukrainian reconstruction in the future. #eabh Podcast

A practitioner's perspective with Edgar Walk (Metzler Bank) and Carmen Hofmann (eabh). How can history insight help to bridge the gap between mathematical economic theory models and the 'real world of finance'? Edgar shares his insights from more than 20 years at one of the world's oldest private banks. How can history serve as a framework to identify financial and political cycles? How can it help to build a framework to see risks clearly and take sound long-term investment decisions? Listen up to get financial history insight! #eabh Podcast

A practitioner's perspective with Edgar Walk (Metzler Bank) and Carmen Hofmann (eabh). How can history insight help to bridge the gap between mathematical economic theory models and the 'real world of finance'? Edgar shares his insights from more than 20 years at one of the world's oldest private banks. How can history serve as a framework to identify financial and political cycles? How can it help to build a framework to see risks clearly and take sound long-term investment decisions? Listen up to get financial history insight! #eabh Podcast

Stein Berre (New York Fed) & Paul Kosmetatos (University of Edinburgh) talk to Carmen Hofmann (eabh) about the first global credit crisis (1772/73). Which role did innovative financial products play? How did financial contagion propagate the initial shock and in which way did authorities intervene to stabilise markets? Interestingly enough, the events 200 years ago resulted in a larger role of central banks within the architecture of finance. These state institutions then used certain stabilisation techniques that are still in place today. What is it that defines their success?

Stein Berre (New York Fed) & Paul Kosmetatos (University of Edinburgh) talk to Carmen Hofmann (eabh) about the first global credit crisis (1772/73). Which role did innovative financial products play? How did financial contagion propagate the initial shock and in which way did authorities intervene to stabilise markets? Interestingly enough, the events 200 years ago resulted in a larger role of central banks within the architecture of finance. These state institutions then used certain stabilisation techniques that are still in place today. What is it that defines their success?

This episode is about one of the oldest banks in Europe. Alex Cooper (Leicester University) and Carmen Hofmann (eabh) discuss the financial needs of an island society and how banks are an integral part of local communities' fabric. In the case of Sicily, the creation of its own issuing bank was crucial for both; access to London capital markets and independence from British governance. Listen to hear why money always circulates!

This episode tells the story of the rise and fall of the Mississippi Bubble (1720) in Saint Domingue (Haiti). Malick Ghachem (MIT) discusses with Carmen Hofmann (eabh)why money seems not to be working for Haiti today and how he sees the roots of the country's financial malfunction in its past. Listen to learn how Haiti's struggle for independence is connected to the debt crisis of Louis XIV and the invention of paper money in France. #eabhPodcast #Finance&History

How shall companies confront a difficult past? In the most transparent way. So say Mike Anson (Bank of England) and Michael Bennett (Sheffield University) in conversation with Carmen Hofmann (eabh). The topic of this episode is the collection of slavery compensation (1835 -43); after slavery was abolished within the British Empire in 1833. Part of a compromise that helped secure abolition was a compensation package for British slave owners for the loss of their ‘property’. The Bank of England administered the payment of slavery compensation on behalf of the British government. Listen to Mike & Michael showcase the Bank of England archive and shed new light on the matter. #FinanceandHistory #eabhPodcast

With Ghassan Moazzin (University of Hong Kong), Carmen Hofmann (eabh) talks about the integration of China into the world economy in the late 19th century. It's the time towards the end of the Imperial period in China. Did foreign actors impose Western capitalism or merely fill an ever growing institutional void and need for capital to finance reform and build critical infrastructure? Listen to Ghassan explain why the truth is likely to be found in the nuance of history. And what he thinks of China coming full circle with the Belt and Road Initiative...

Are real sector bailouts good public policy in crisis? In early 1932, President Hoover created the Reconstruction Finance Corporation during the depth of the Great Depression. The objective was to protect the credit structure and stimulate employment. The loans given were below market interest rates; hence qualified as bailouts. Gertjan argues that these bailouts benefited existing employees and bondholders, but did they meet the goal of keeping credit flows alive? In this episode, we discuss the new deal railroad assistance and its implications for today: Are real sector bailouts good public policy in crisis? Gertjan Verdickt (KU Leuven) in conversation with Carmen Hofmann (eabh)

Founded in 1674, Bankhaus Metzler is one of the oldest continuously family owned financial businesses in the world. This longstanding independence gave the bank and its customers many opportunities to make money. The bank proved the soundness of its business during several difficult periods in history, like the German hyperinflation after the Great War. The following period of National socialist rule in Germany (1933-1945), was undoubtedly one of the more difficult chapters of the bank's history. Andrea Schneider Braunberger (GUG) wrote a book about the bank's business during that time. With uncensored access to newly available primary archival sources, she took a very close look. Here she talks to Carmen Hofmann (eabh) about the challenges and opportunities for businesses to confront a potentially difficult past.

The Great Depression remains the largest financial crisis in American history. Bank of America is one of the largest banks in the United States. At the time, the Bank did something remarkably well in order to maneuver the turbulent waters of that great crisis. What was it and how did the bank do profitable business as much as foster economic and structural change in difficult economic circumstances? Sarah Quincy brings new archival evidence from California archives to the table to discuss credit, crisis and recovery. Sarah Quincy (Vanderbilt) in conversation with Carmen Hofmann (eabh).

Was there a world before inflation targeting? Alain Naef (Banque de France) and Carmen Hofmann (eabh) talk about currencies and exchange rates. More precisely about how pound sterling was managed on a daily basis, how Black Wednesday (1992) ended active exchange rate management in Great Britain and why the story of sterling after 1945 is the story of the decline of the British empire. #eabhPodcast

Broken promises? This episode is about the world's growing dependence on debt financing and current challenges to the world economy. The promise once made that deeper and larger financial markets would make our economies more stable did not hold true. What happened instead? What is meant by the paradox of stabilisation policies and central bank safety nets? What can history teach us about risks and structural matters in the financial system? Do we need a re-assessment of the Great Financial Crisis? And if so, should we look towards psychology for answers rather than maths? Moritz Schularick (Bonn, Paris) & Carmen Hofmann (eabh) discuss financial leverage, fragility, central banks' balance sheets and new economic thinking.

How to build an economy? Come and follow Hugo Bänziger (eabh) & Pete Asch (NYSE) to the creation of the modern US American economy and their views on the historical roots of the country's current dynamic economy. Together they discuss the creation of the US bond market, the role of Hamilton, the significance of the Buttonwood Agreement and the role of equity. More than helping build a modern state, the New York Stock Exchange was the driving force behind New York becoming a powerful financial center. How did that happen? Was it all keeping the early lead? Peter Ash shares insights from his archive, and more than that why he thinks the company's vault holds one of the keys to its future success.

How do the Swedes do it? Here comes a straightforward conversation between Anders Sjöman (Stockholm) and Carmen Hofmann (eabh) about the Centre for Business History in Stockholm. The organisation preserves Swedish business history since 1974 and has made a profitable business out of helping companies preserve their history and share their heritage. Why should we put money into preserving archives and exploiting history? How to turn historical material into a strategic asset for business development? Listen to Anders’ fascinating answers to these questions.