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Banks fail sometimes and there is no regulation or risk management system that can prevent it. To increase protection for clients and economy one could by law i
by mhkool 7y ago
Banks fail sometimes and there is no regulation or risk management system that can prevent it.
To increase protection for clients and economy one could by law introduce 'bank types' where, for example the type 'low risk' is only allowed to do transactions with low risk with of course lots of options to define what 'low risk' is.
- LorenPechtel 7y agoWhile banks sometimes fail this is the tip of the iceberg. The government has been using the banks to keep the economy on high, never mind that an awful lot of the loan security is not worth it's paper value. I'm sure you've heard of the ghost cities?
- Rebelgecko 7y agoGotta be careful with that. Someone might get the bright idea to combine a bunch of smaller medium risk transactions to diversify and reduce risk. Then you end up with 2008 all over again
- mrunkel 7y agoWe used to have something like that in the US. Namely https://en.wikipedia.org/wiki/Glass%E2%80%93Steagall_legislation https://en.wikipedia.org/wiki/Glass%E2%80%93Steagall_legisla...