Thursday, Mar 25, 2010
Nothing to prevent another banking crisis
Credit Writedowns: Lehman chief warns of more big bank failures
Lehman head Bryan Marshal has warned that neither Wall Street nor regulators have learned anything from the crisis. E.g.:
Q: "You are handling the largest bankruptcy in human history. Can anything like this happen again?"
A: "It is even likely that a case like Lehman’s will repeat itself. There is still too much leverage in the market, and credit default swaps remain completely unregulated. Even with regulators and in the companies little has been done after the global catastrophe".
Here is the man overseeing the largest bankruptcy in history telling us that, 18 months on, US regulators haven’t even asked for his professional opinion as to what went wrong and how we can stop a repeat.
Posted by icarus @ 02:25 PM (439 views) Add Comment
1 Comment
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1. Rich Kightley said...
Yes, and I know the reason that the crunch will repeat itself and the world economy will not recover for a qtr century.
There is no deterent. No one was jailed, executed, stripped of property, and banned from financial trading (virtually). A reduced huge bonus was the hardest punishment. Basically, it is legal, there is no criminal offence in this destruction.
The bankers have lobbied for this free hand , now they have it. They will follow the incentives to their and our destruction.
It's a mad, mad world!