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Adopting strong board and management oversight, for instance, will help curb risk and greed to the point where a company can absorb its own losses without coming to taxpayers, hat in hand, again.
DealBook Red Flags Over China Real Estate | China is taking steps to curb risk in its real estate sector, with regulators pledging to increase oversight amid international fears of a property bubble.
BRITISH PROPOSAL TO CURB RISK IS FAULTED | Proposed legislation to protect Britain's financial services sector from future crises does not go far enough and may fail to stop banks from engaging in risky trading, British lawmakers warned in a report on Monday, DealBook's Mark Scott reports.
To curb risk, the Larsons also diversified: Among other things, they now make fleece clothing and distribute shoe polish.
That would make it harder to put in place policies to curb risk.
But in the end, just as had happened during the crucial years leading up to the financial crisis, concerns never led to concrete action that forced banks to curb risk.
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The rule aims not just to curb risk-taking directly, but to enhance monitoring of it too.
The way the parliamentary debate is headed, lawmakers may end up trying to curb risk-taking through fund managers' pay packets rather than via restrictions on the way they conduct business.
Yet he cites as evidence little more than a string of examples of banks that appeared to be well-capitalised before they failed, without acknowledging that capital can curb risk-taking and absorb losses.
FINANCIAL TIMES European Lawmakers Propose Curbs on Banker Pay | Members of the European Parliament have proposed that a draft of a law on bank capital should include rules governing pay, as leaders look to curb risk-taking, Bloomberg News reports.
The trading blowup, which came at time when regulators were writing rules to curb risk-taking on Wall Street, added fuel to the debate over how much the banks needed to be reined in.
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