Banks: the chickens are coming home to roost

Bankers’ bonuses are going to be capped. The poor dears who rely on their bonuses to maintain their life styles will, in the European Union, have their bonuses capped to the equivalent of their annual salaries. It will be a small step on the right path and in the right direction, but it fails to deal with the underlying problem that the banks have caused and still cause for our economies. The second small step will be to separate the traditional banking business for taking deposits and lending from the highly speculative activities which involve what is in effect gambling with other banks. Continue reading

Odd things – Casino Banking

If you entrust your money to JP Morgan Chase you will be perturbed to learn that the bank managed to have lost $2 billion due to errors sloppiness and bad judgement and that more losses are on the way. It did not lose the money because of some crooked employee; it lost it in what is the casino in which banks participate, hedging wrongly – in other worlds making best without, as every good bookmaker does, laying of appropriately to minimise loss potential. Continue reading