Should Banking Be Boring?

What is disturbing, and perhaps this is what Warren is getting at, is that since the financial crisis the risk-reward equation has been flipped. Because of the government’s implicit guarantee to rescue banks deemed too big to fail, the risk is low. Meanwhile, the marriage of commercial banks with investment banks has created a compensation environment with high rewards. Much of the fear that should be part of banking has been wrung out of the system.  Should Banking Be Boring

Banking Boring?  The Cure- Put Risk Back in the Equation

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