Many national leaders, such as those at the G20 meetings, are advocating global regulation of the financial services industry. I am not convinced.
Much of the buildup to the current crisis happened in plain view – housing bubbles in the US, UK and Spain, mortgage lending insanity like 125%mortgages, soaring volumes in complex derivatives with immeasurable [...]

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In Sunday’s New York Times, Eric Dash and Julie Creswell take apart the failed risk management practices at Citigroup in a detailed article that draws on extensive comments from bank insiders.
Much of the cause will be no surprise – traders overpowered the risk managers, a senior risk manager was good friends with the guy who [...]

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