Lord Turner spoke on securitisation, shadow banking and the value of financial innovation. He looked at:

  • how and why financial innovation in the field of securitised credit ended in the 2008 crash. He looked at the arguments that had stated the securitised credit markets offered greater market efficiency and stability, or that securitisation enabled more credit creation; and
  • whether generally financial innovation is valuable. He said the previous belief in its value has been rejected and key commentators have noted there has been little of value in recent years.

He spoke about the scope of both securitisation and shadow banking, giving examples of their characteristics and uses and noted attendant misconceptions and risks. (Source: Securitisation, Shadow Banking and the Value of Financial Innovation)