When Governments are Banks and Banks are Casinos
18.01.2013 15:00
For those who think that financial system reform, either in the U.S. or in the Eurozone, has made the financial system safer, an article has been published in the February issue of the Atlantic which should dispel any illusions. See - What’s Inside America’s Banks? byFrank Partnoy and Jesse Eisinger (
http://www.theatlantic.com/magazine/...-banks/309196/ ). The piece examines, as near as is humanly possible, the business model of a long-thought-to-be conservatively managed American bank, namely – Wells Fargo. Without going into the mind numbing details, the conclusion of the article is that even this ‘old-style’ bank is operating as a casino with unknown – and perhaps unknowable – risks, and deriving much of its profit from these activities.(Source of
article.)
