Former Chair of the Federal Reserve Wins Nobel Prize for Research on Bank Failure

Former Federal Reserve Chair Ben Bernanke and two other U.S.-based economists won the Nobel Prize in economics for research into bank failures — work that built on lessons learned in the Great Depression and helped shape America’s aggressive response to the 2007-2008 financial crisis.

The Nobel panel at the Royal Swedish Academy of Sciences recognized Bernanke, Douglas W. Diamond and Philip Dybvig on Monday for research that shows “why avoiding bank collapses is vital.”

Their findings in the early 1980s laid the foundations for regulating financial markets, the panel said.

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