Banking's Moment of Truth -Joe NoceraQuicklink submitted by Susan Lee Schwartz Permalink
(more...) (less...) ,
|Did YOu know ? 'The current fight over additional capital requirements for the banking industry happens to be the most important reform moment since the financial crisis broke... More important than the wrangling over Dodd-Frank. More important than the ongoing effort to regulate derivatives. More important even than the jousting over the new Consumer Financial Protection Bureau,' says Nocera. 'A real capital cushion would have allowed the banks to absorb the losses instead of the taxpayers. That's the role capital serves.... Banks always want capital requirements to be as low as possible, because the less capital they have, the more risk they can take and thus the more money they can make (and the bigger the executives' bonuses). But so what? Trading some bank profits for a safer financial system is a deal most Americans would take in a heartbeat.'|
The time limit for entering new comments on this Quicklink has expired.
This limit can be removed. Our paid membership program is designed to give you many benefits, such as removing this time limit. To learn more, please click here.