Culture must change with politicians, regulators and central banks first. Osbournes recent allowance of currency derivatives within the ring fence is a significant negative issue for banking safety. As most know, currency trading dwarfs stock trading, hence the magnitude of effect on derivatives potential losses must be bigger than with stocks? Either way it still allows gambling on the back of savers money, NOT acceptable. In addition certain central banks fail to rail in bubbles (BOE) is one of these, they avoid hitting 2% inflation as the average.....a serious cultural problem and one I believe to prop up their own personal investments and pensions, NOT acceptable. Regulators in the USA dumped the Glass Steagall act which gave significant safety to banking and controlled the "culture". Many other regulations are also good "Volker rule", etc. However regulators bow to politicians desires, ditto banks, this is part of what I call the MAFIA culture which exists, NOT acceptable. Good regulation can fix the problem, but if regulations are broken Osbourne style, we will continue to have serious bubble problems as the casino moves to the loopholes. I believe failure to change will create a public backlash, these things toppled Rome.
FT Article: Corporate culture - Lofty aspirations
No comments:
Post a Comment