Banking Sector Vulnerabilities Exposed: Lessons from Michael Milken and IMF Director.
Michael Milken, the Chairman of the Milken Institute, has stated that the current banking crisis is due to a classic asset-liability mismatch that has been repeated throughout history. He believes that banks should not borrow short and lend long, and that they should exercise caution on liability and asset management. Milken also predicts that there will be a decrease in the percentage of loans owned by the banking system in the aftermath of the crisis, as they move into the hands of pension funds with long-term liabilities.