Saturday, June 18, 2011

Unregulated Banking

The dangers of unregulated banking were pointed out by Henry Kaufman, former partner at Salomon Brothers, in his memoir, "On Money and Markets."

On page 82, Kaufman wrote,"This is not to say that the market should be left to regulate itself. Such a laissez-faire approach would not work, nor serve the public interest."

Down the page a few lines, he continued, "The rapid proliferation of financial derivatives is outpacing the ability of investors and regulators alike to assess risks in timely and responsible ways."

Seems like a pretty fair perspective on what actually did happen, doesn't it?

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