CBRC chief adviser Sheng brands financial engineering ‘a cancer’
Andrew Sheng, a veteran regulator who acts as a chief adviser to China’s top banking regulator, believes ‘creative destruction’ needs to take place when financial engineering goes beyond an optimal level, as it did in 2007-2008.
In a wide-ranging interview tackling subjects such as the breakdown in modern financial theory underpinning central banking policy through to the best way to take control of a troubled financial institution, Andrew Sheng, chief advisor to the China Banking Regulatory Commission (CBRC), derided the role of financial engineering in modern finance.
"Financial engineering is a cancer," Sheng said in a Q&A with Central Banking editor, Claire Jones, called Theory failure, published in the February
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