RBS told to meet US fine from bonuses – FT.com

Borrowing Under a Securitization Structure

Borrowing Under a Securitization Structure (Photo credit: Wikipedia)

Diagram of the Subprime Mortgage Crisis

Diagram of the Subprime Mortgage Crisis (Photo credit: Wikipedia)

English: Each of the five largest investment b...

English: Each of the five largest investment banks took on greater risk leading up to the subprime crisis. This is summarized by their leverage ratio, which is the ratio of total debt to total equity. A higher ratio indicates more risk. From fiscal years 2003-2007, these firms significantly increased their leverage ratios. A ratio of 10-15 is more typical of a conservative bank. These firms had ratios closer to 30. (Photo credit: Wikipedia)

This article in the FT is worth a read. Check it out!

via RBS told to meet US fine from bonuses – FT.com.

Surely, it’s time to get rid of the investment banks from public ownership?

Hive off the investment banks, tart them up and then sell them to the highest bidder is the solution, in my view.

Thoughts?

 

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Structural reform: A growth manifesto | The Economist

English: Logo for The Economist

English: Logo for The Economist (Photo credit: Wikipedia)

This is an interesting article in the current edition of the Economist reporting on a recent report published by the LSE Growth Commission. Both the article and the report are worth a read, in my view. Check it out!

Structural reform: A growth manifesto | The Economist.

Personally, I struggle to see any of the three major political parties campaigning on structural reform and growth. There is a major trust and credibility challenge to be addressed first, in my view.

What do you think?

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