There is a strong populist strain of anti-banking sentiment in the US (vividly demonstrated in Congress this week) and in the UK. Banks are especially unpopular in two circumstances: first, when they are very profitable; and second, when they are very unprofitable. Full Story »
Posted by Derek Hawkins
Davies does a superb job not only explaining the crisis but proposing renegotiation of the social contract of banking, including a careful consideration of deposit protections, liquidity supports and capital requirements. A renegotiation in which he advises regulators and bankers to move carefully, lest one misplaced apple upset the whole cart. This reasoned approach to reform will appeal to those who understand and appreciate the complexity of the modern financial system.
