Derivatives: The Unregulated Global Casino for Banks

Essentially everybody's postulating the same prescription, restructure for accountability and transparency. How to accomplish this incrementally without throwing the world into a Mad Max state of economic chaos
is the conundrum.
 
Quote from Martinghoul:

There would have to be a mechanism to limit their size and prevent excessive concentration, though.
More...

I rather suspect that if we had a formal "no bailout" policy - and actually stuck to it - the problem would largely self-regulate. But I'm not sure it's possible without also modifying the Fed's SOP, since they provide a backdoor bailout mechanism.

Anyway, this is likely all rather moot, since as a society we're simply not willing to do this, and I see little indication that is going to change.
 
Quote from Random.Capital:
I rather suspect that if we had a formal "no bailout" policy - and actually stuck to it - the problem would largely self-regulate. But I'm not sure it's possible without also modifying the Fed's SOP, since they provide a backdoor bailout mechanism.

Anyway, this is likely all rather moot, since as a society we're simply not willing to do this, and I see little indication that is going to change.
More...
+1
Quote from Banjo:
Essentially everybody's postulating the same prescription, restructure for accountability and transparency. How to accomplish this incrementally without throwing the world into a Mad Max state of economic chaos
is the conundrum.
More...
+1
 
Quote from Martinghoul:

Precisely... Reality is so much more difficult to understand and deal with than the stupid article makes it look.
More...
after the experts get between us and the data it's impossible...
 
Quote from Martinghoul:

Yep, I think that's a viable step... I, personally, would also be very much in favor of some measure of personal liability for directors. IMHO, that's the weakest link in corporate governance. Especially, in light of the Bob Diamond/Barclays shenanigans this week.
More...

Do you really think that this is an implementable step?
 
Quote from pythontrader:
Do you really think that this is an implementable step?
More...
I dunno... I am encouraged by the fact that there appears to be a mini shareholder revolt occurring as we speak. Moreover, in the UK they have done something similar w/pension trustees, so there's hope. However, who knows...
 
Quote from Martinghoul:

I dunno... I am encouraged by the fact that there appears to be a mini shareholder revolt occurring as we speak. Moreover, in the UK they have done something similar w/pension trustees, so there's hope. However, who knows...
More...

Yeah... Who knows... They have tried to change the payment structure of the CEOs in Germany (take the Deutsche Bank (Ackermann) for example)... I'm sure you khow how it worked out.

As far as the pension trustees are concerned, well I guess we are comparing apples with oranges here. You know what I mean.
 
You must log in or register to reply here.
Back
Top