UK prepares new law to break up errant banks

Comments (5)
usagadfly wrote:

Why is it that monarchist Britain can contain reckless banking while the USA cannot? Is it because of the difference in their political financing systems? Everything, and everyone, in America is for sale.

Feb 04, 2013 8:53am EST  --  Report as abuse
Mott wrote:

What’s needed here.

Not bankrupty protection with public funds but accountability for reckless practices.

Feb 04, 2013 10:21am EST  --  Report as abuse
xyz2055 wrote:

usagadfly..ever compared bank CEO salaries in the UK versus the U.S.? U.S. bank CEO’s are incentivized to take huge risks. JPMorgan invented the CDS. Financial weapons of mass destruction.

Feb 04, 2013 10:25am EST  --  Report as abuse
Jamesrudy wrote:

Conventional banking practices do not derive desired level of profitability for the banks under our prevailing banking system. Banks mostly inevitably get involved with equity derivatives. In the broadest sense, derivatives are any financial contracts that derive their value from underlying assets. However we should take heed of former SEC chairman Arthur Leavitt’s 1995 caveat that “derivates are something like electricity; dangerous if mishandled, but bearing the potential to do good.”

Feb 04, 2013 1:36pm EST  --  Report as abuse
Jamesrudy wrote:

The compa ratio and bonus of the CEO or directors of such investment banks depend on how sophisticated they are able to deal with derivatives.

Feb 04, 2013 1:44pm EST  --  Report as abuse
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