Comments on: Big Week ahead

By: nash

nash — Tue, 31 Mar 2009 13:18:08 +0000

Phil I agree. Provisioning in your balance sheet a percentage of your loan book must be a MUST across the globe. Credit rating agencies must be really independent, and have some sort of public/private partnership structures. However I still think the main problem is that banks are proving to be very inefficient distribution networks of liquidity in these difficult times. I think that until that is resolved regulation is not the answer. Hence my opinion that public “facilitation” (not intervention in teh strict sense) should be the answer.
Michaelg, I know where your coming from, but bankers are a “necessary evil” What they require is to have more independet non executive board members that truly provide objectivity, and a separate board supervising regulatory compliance and balance sheet risk.

By: michaelg

michaelg — Tue, 31 Mar 2009 11:25:07 +0000

Then a global banking rule sheet might be the answer. A set of RULES not guidelines that all banks must follow. The “management team” of banks caught breaking any of these rules should be held accountable (strip bear of all their family’s assets - 4 generation up or down). - Umm sounds really harsh.

By: Phil

Phil — Tue, 31 Mar 2009 10:34:40 +0000

For me a world bank would be the wrong move…trusting one central entity is equivalent to putting all the eggs in one basket. there is a need however to have uniformed controls that are enforced on a global scale..

By: michaelg

michaelg — Tue, 31 Mar 2009 09:57:49 +0000

Nash. I am NOT for a world bank. Having a minister of banking might be the way to go, but the people behind the banks, have way too much power/influence that the minister will end up working for them. So the quest continues for a solution.

By: nash

nash — Tue, 31 Mar 2009 09:07:43 +0000

Michaelg, I don’t think creating a world bank will be the solution… It does seem however that banking should become a “public service” in each country, at least for the coming years… The “Ministry of Banking”? Minister of Banking? Once this is over we can go back to banking in the private sector…

By: michaelg

michaelg — Tue, 31 Mar 2009 07:04:57 +0000

Is this the beginning of the creation of a world bank? a single bank that controls every other banks in all countries.

By: nash

nash — Mon, 30 Mar 2009 21:59:19 +0000

It will be a very interesting week… ECB, first intervention in the Spanish banking system during this crisis (will it expand and then move to France and/or Germany?), and the G20… thanks