It offers a rationale for nationalisation that doesn't centre on the questionable priority of increasing bank lending, and it deals seriously with the question of bank liabilities, rather than postulating a fantasy scenario of nationalisation on the cheap that involves punishing bank debtholders.
More directly, a German official told me, "Europeans and Americans could split on the question of banks' capital requirements".
And what, if anything, should be done to improve the regulation of banks and other financial firms?Take first the question of banks' ability to manage risk.
Yves Smith over at Naked Capitalism asks an excellent question of bank regulators: Why isn't there more in the way of formal regulatory forbearance right now?
By James Surowiecki January 26 , 2009Yves Smith over at Naked Capitalism asks an excellent question of bank regulators: Why isn't there more in the way of formal regulatory forbearance right now?
Critics of ILCs say that fundamental questions of bank regulation are at stake, which deserve a thorough airing in Congress: they should not be settled piecemeal, by single bills and licences.
McGlunk, the famous right tackle was our first student... How we procured four teen players at a yearly pay roll of $50,000 is more a question of high banking... View Article By Rivka Galchen By Ben Taub By Malcolm Gladwell By David Remnick.
McGlunk, the famous right tackle was our first student... How we procured four teen players at a yearly pay roll of $50,000 is more a question of high banking... View Article By Miranda Carter By Jia Tolentino By Doreen St. Félix By George Packer.
Similarly, there are now three remaining important capital rules still on the table, dealing with liquidity, extra capital for the biggest banks and the question of how banks hold debt.
While the outcome of the various investigations into the bank's dealings remains unclear, they raise the obvious question of whether banks have become not only too big to fail but too big to manage.
