Monday, September 21, 2009

Reform or Bust

by Paul Krugman

In the grim period that followed Lehman's failure, it seemed inconceivable that bankers would, just a few months later, be going right back to the practices that brought the world's financial system to the edge of collapse. At the very least, one might have thought, they would show some restraint for fear of creating a public backlash.

2 comments:

  1. in the same vein:
    The Continuing Disaster of Wall Street, One Year Later - by Robert Reich

    "Let's be clear: The Street today is up to the same tricks it was playing before its near-death experience. Derivatives, derivatives of derivatives, fancy-dance trading schemes, high-risk bets." “Our model really never changed, we’ve said very consistently that our business model remained the same,” says Goldman Sach's CFO...

    http://robertreich.blogspot.com/2009/09/continuing-disaster-of-wall-street-one.html

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  2. CEO of International Swaps & Derivatives Association says trust us -

    Witnesses also challenged the Treasury’s plan to impose capital requirements on cleared swap transactions. This would require the end-user businesses to post collateral for the swaps, Budofsky said. Collateral requirements for corporate end-users “would create a significant ­disincentive to use swaps to manage risk,” he said. “End-users are not systemically significant and ­regulations intended to improve stability and decrease systemic risk should not ­apply to them.”

    http://fancylogocatchytagline.blogspot.com/2009/09/ceo-of-international-swaps-derivatives.html

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