All the more reason why we should never waste a good crisis:
“As the world’s banking system teetered on the brink of collapse just about a year ago, there were widespread, heartfelt, calls for reform.
Politicians of all stripes on both sides of the Atlantic, spurred on by taxpayers’ outrage at the cost of bailing out those who ought to need help least, vowed to get tough. No longer would banks be allowed to become too big to fail, or bankers be rewarded for taking risks that prove the undoing of their institutions.
But just one year later, as the world’s economy begins to emerge from a severe recession and some big banks once again appear profitable, it is not clear that the political resolve remains as strong.
To this end G20 finance ministers, meeting in London, agreed the broad outlines of a future regulatory structure designed to ensure that banks cannot take risks they do not understand or offer senior employees rich rewards for activities that, years later, prove the system’s undoing.”
Will O be like FDR, or just another Carter . . .?
Regulation: Doubts over political resolve for reform
FT, October 5 2009 17:23 | Last updated: October 5 2009 17:23