Thursday, May 26, 2011

Change is afoot

Are the changes being made in this article helpful or hurtful? Not just to the banks, but the the global economy as a whole?



http://www.economist.com/node/18654622
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4 comments:

  1. EMeisheMay 26, 2011 at 11:19 AM

    Interesting article and cool graphics. I think that the key is to find balance in moderation. Stopping deposits from funding loans seems to go to far but I like the idea of living wills for banks, basically a contingency plan for there failure. I this might also help get rid of some of the implicit government guarantees because if we have a plan for them to fail then the banks cannot take risks assuming we will bail them out.

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  2. Becky McLaughlinMay 26, 2011 at 12:29 PM

    I agree that finding the balance in regulations will be the key. I also have faith in the Dodd-Frank act. Separating investing banks from commercial banks is a good step forward. However I'm not sure about the debit card fees they mentioned.
    Personally I think the extreme regulations happening in Britain and Switzerland are a bit extreme. So time will tell which plans yield the best results I suppose.

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  3. BethMay 27, 2011 at 5:55 PM

    Personally, I love the requirement that banks will hold more capital than they had before. Being one of the bigger factors for the necessity of the bailouts, I'd like to see banks be required to hold a bigger safety net for themselves. That sounds like accountability to me-or a closer step anyways.

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  4. MattMay 29, 2011 at 2:46 PM

    I agree with Beth, I think banks should hold more capital then they previously have. Having a larger safety net for themselves sounds smart to me. It's definitely a step in the right direction, but we need more to truely be accountable.

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