Tuesday, August 23, 2011

Need to rethink policies to keep lead...

Am sticking my neck out here and trying to make the case that banking as a whole did not cause the global financial crisis. In most of the non Western world, Banks are in great shape and trying to actually lend real money to real people and businesses; not just sitting at computer screens making leverage trades on global markets. Seems to be accepted given some good comments I received on the article (click here to view) - and still get invited to dinner parties once in a while too!

1 comment:

  1. Well, well good for you James, that you are still invited in parties...To be more serious, we need to differentiate between Mauritius and US e.g. where much of loans are based on real value of collaterals and not on a derivative of that collateral bundled together to make it "too big to fail". In addition in Mauritius our minimum capital requirements are well above Basel 2, Basel 2.5 and even Basel 3 requirements.