Why the world needs reckless bankers - FT.com

“Conventional wisdom has it that the financial crisis originating in the US proves that the ‘Anglo-Saxon’ financial model is too dangerous and too deeply flawed to have much to teach the rest of the world, … the ‘other’ main banking model … seemed to have failed so spectacularly in the country [Japan] that was long considered its greatest exponent. … Long-term wealth creation accrues most to societies in which the financial system most willingly funds risk-taking entrepreneurs. … The more a financial system is willing to finance risky new ventures, the greater the likelihood of banking instability.”

We see what happens when bankers are let loose to do whatever the hell they want. Less regulation is NOT the answer, but at the same time, we can’t have over-regulation, and to that I agree. There should be risk-takers, but not in an unregulated economy. Pettis’ point that we should have less regulation because it transfers less resources to “producers of wealth” is hard to understand when “wealth producers” don’t even produce the wealth needed to move society in a positive light.

The Big 4.

Realities Behind Prosecuting Big Banks - NYTimes.com

“[T]he fact that prosecutors have not claimed a big-time scalp in the financial crisis obscures the issue of prosecuting companies themselves and the complications such prosecutions raise. There is a powerful argument to be made that prosecutors should focus on the individuals responsible for the misconduct [instead of the banks themselves].”

The funny thing is that no one ever talks about only prosecuting the ones who’ve made those critical decisions that would start the domino effect. However, one argument that I can automatically make is - how can you effectively target those who’ve made that decision? There are many at the top that can sign off on some pretty important decisions, is it always fair to look at the CEO for every terrible decision that one sector of the company may have enacted? Regardless, there has to be some degree of responsibility, and we need to go after those who’ve turned a blind eye towards society.

JPMorgan to cut up to 17,000 jobs by end of 2014 | Reuters

(Reuters) - JPMorgan Chase & Co (JPM.N) said on Tuesday that it plans to cut 17,000 jobs by the end of 2014, representing about 6.6 percent of the company’s overall workforce, as the bank sheds staff that helped it deal with bad home loans.

So I know I haven’t posted anything in a long time, but I swear I have my reasons (work, other work on top of that work, and a bunch of catching up to do in terms of reading and studying). I promise to start posting more.

For those who have been following some recent economic news, you might have heard about the LIBOR Scandal, a controversial scandal that saw the banking company Barclays try to manipulate worldwide interest rates. Here’s a nifty infographic that tells you, the consumer, just how you are effected by this scandal in general.

Even more recently, according to the New York Times, Barclays just settled accusations for $450 million last month. However, Barclays ultimately decided ‘fuck that’, and has raised their rates even higher. Here, the NYT explains how the rate is set, and consequently, how the rate is manipulated.