Economics

We had Glass-Steagall and pissed it away. Europeans are starting to realize the wisdom behind it, and are rightly considering instating ‘ringfencing,’ something that we don’t have the will or the balls to return to.

“As regulators join the Swiss bank (UBS) in scrambling to figure out how a single suspect could have racked up as much as $2 billion worth of rotten bets over three years, analysts and politicians say the catastrophic losses reinforce the case for divorcing retail banks from their investment arms.
“(John) Vickers’ 363-page report argued that Britain’s retail banks should be split off by 2019 to reduce the risks of taxpayers having to bear the cost of any future bailouts, saying that “the risks inevitably associated with banking have to sit somewhere, and it should not be with taxpayers.”

http://news.yahoo.com/ubs-trading-losses-fuel-push-split-banking-134641240.html

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s