The FSA tells the banks how to run the banks.

[Happyolddog]

From about the mid-1990s to the autumn of 2008, the dominant model of how to run a bank was based on three very silly ideas:
1) there would never again be a severe economic recession;
2) markets were rational and perfect, so financial innovation was always benign;
3) greed could never cloud the judgement of bankers.
Then Lehman Brothers collapsed, most of the world's biggest banks found they couldn't survive without some form of help from taxpayers, and a global slump was caused by a collapse in the provision of credit on a scale we haven't witnessed for 80 years.
To state the bloomin' obvious, we mustn't ever be fooled again.

Full story

http://www.bbc.co.uk/blogs/thereport...less_risk.html

[Tools]

Re: The FSA tells the banks how to run the banks.

I do like Robert Peston