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Barbarians at The Vault
Oleh:
The Economist
(Editor)
Jenis:
Article from Bulletin/Magazine
Dalam koleksi:
The Economist (http://search.proquest.com/) vol. 387 no. 8580 (May 2008)
,
page 15-16.
Topik:
Banking System
;
Under Attack
;
Modern Finance
Ketersediaan
Perpustakaan Pusat (Semanggi)
Nomor Panggil:
EE29.49
Non-tandon:
1 (dapat dipinjam: 0)
Tandon:
tidak ada
Lihat Detail Induk
Isi artikel
Banks have endured a brutal nine months since credit markets foze in August. Losses and write-downs already total $ 335 billion; many their best business have disappeared. In developed economies, almost all banks are facing economic and regulatory headwinds that will cut revenues and jobs. Yet the biggest danger facing Western finance is not a fall in its earning power but a loss of faith in how it works. Two criticism assails the industry, one based on fairness and the other on efficiency. Thje first argues that finance is rigged or enrich bankers, rather than their customers, sharerigged to enrich bankers, rather than their customers, shareholders or the economy at large. Some worry about the way bonuses are calculated; others about moral hazard. Bankers will take wild bets because they know they will be bailed out by taxpayer. Look at Bear Stearns or Northern Rock.
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