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Quote by Ian Macfarlane

“When everyone feels that risks are at their minimum, over-confidence can take over and elementary precautions start to get watered down.”

Quote by Ian Macfarlane

Author

Ian Macfarlane
Ian Macfarlane

Ian Macfarlane is an Australian politician who has been active in the political scene since his birth on April 5, 1955. He has served as a member of the Australian House of Representatives, representing the interests of the Liberal Party. more

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“The securitisation of mortgages added a new dimension of systemic risk. Financial engineers claimed they were reducing risks through geographic diversification: in fact they were increasing them by creating an agency problem. The agents were more interested in maximising fee income than in protecting the interests of bondholders. That is the verity that was ignored by regulators and market participants alike.”