InvestmentWatchBlog – NY Fed President: Some Wall Street Banks Are Just Morally Bankrupt – 8 November 2013

InvestmentWatchYesterday, New York Federal Reserve Chair William Dudley gave an ominous speech about the danger of ‘Too Big To Fail’ on Wall Street, in part blaming the industry’s very nature for its continuation.

The speech was long, but his points were simple — TBTF is alive, and while coming up with a doomsday plan and making banks hold more money is important, it’s not enough. Regulators must find a way to change management incentives on Wall Street so that risk is mitigated far before a bank comes close to failing.

If that can be achieved, questions about the size of U.S. banks are less important (though worth discussing with appropriate respect for their complexity).

Read more: http://www.businessinsider.com/dudley-too-big-to-fail-speech-2013-11#ixzz2k4JsAOp6 via www.investmentwatchblog.com / link to original article

Advertisements

Comments are closed.