PanThe New York Review of BooksAlthough Mallaby agrees with many others that the Fed’s failure to address the risks of unregulated derivatives significantly contributed to the economic crisis of 2007, he also blames Born for not accepting some of the compromises to her proposals that were put forward. And he treats Edward Gramlich, the Fed governor in charge of housing-related issues, in a similar 'blame the messenger' manner ... That a biographer of Greenspan could suggest that Gramlich was too reticent on the crucial subjects of mortgages and not mention his book on them seems oddly neglectful. Not only are Mallaby’s assessments unfair to Gramlich (who died in 2007); they also deflect responsibility, in the case of derivatives, from Greenspan—and Rubin and his deputy Lawrence Summers—for not pursuing concerns that such experts as Gramlich clearly perceived ... Mallaby’s summation is both confusing and disappointing, leaning heavily on the unconvincing notion that Greenspan was an observer, not a doer ... Most puzzling is Mallaby’s apparent dismissal of Greenspan’s failures; he believes that it would not have made a difference if Greenspan had done the right things.
