Most Pakistanis relish the prospect of "accountability" for members of earlier regimes, who dodged taxes and treated bank loans like gifts.
"I don't know how we can treat banks as credible arbiters of what appropriate subsidies should be".
One question, Mr. Barnier said, was, "Should we be treating banks that are purely regional and have no cross-border activities in exactly the same way as big international banks?" "That's something that we can maybe look at further in the course of negotiations," he added.
Commercial banks increased their reliance on wholesale funding and on fickle "non-core" deposits, such as those bought from brokers.Regulation did nothing to discourage this, treating banks that funded themselves with deposits and those borrowing overnight in wholesale markets exactly the same.
Indeed, it may even exacerbate the problem if investors in securitised loans treat banks' retained exposures as shorthand for good underwriting, just as they did those infamous AAA credit ratings on structured products.The braver, more logical path to take would be to enforce rules that simply restrict the amount of debt mortgage borrowers can take on, by imposing maximum loan-to-value ratios.
Unsurprisingly, the government often treats banks as tools of its policies rather than as independent businesses.One good example of this was the government's strategy for propping up the bond market after the near-collapse of Daewoo, the second-biggest chaebol (conglomerate), in August.
Fourth, government should not insist on treating banks in different circumstances the same way in an attempt to disguise their differences.
John Coffee, a professor of law at Columbia Law School in New York, said the fine was consistent with how US regulators have been treating bank infractions in recent years.
But several commentators have suggested an alternative scheme that would put far less taxpayers' money at risk and treat bank shareholders more fairly.
