01.08.2013 - Megabanks and commodities don't mix
Opening up commodities markets to megabanks has failed. It's time to break up the banks' business lines. The Federal Reserve has blood on its hands from the most recent financial crisis. In the 1990s, Alan Greenspan and Fed researchers helped promote the explosive use of securitizations and credit derivatives as risk management tools for financial firms. A May 1996 speech exemplifies Greenspan's failure to grasp not only how these approaches would influence bankers' behaviors but also what the economics and risks would be, calling securitization "a paradigm of the evolving risk management techniques in financial markets."..............................................Full Article: Source
Print