COMMENT
Breadcrumb trail navigation:
By Thomas Hoenig
Published: June 16 2011 23:06 | Last updated: June 16 2011 23:06
Politicians and regulators in the US, Britain and Europe are concerned about relative advantages and disadvantages in the global financial system. The real outrage, however, is that taxpayers have seen billions in lost wealth due to fundamental flaws in this system's structure and incentives that have yet to be addressed.
For example, it is persistently rumoured that some major international banks, including Switzerland's UBS and Barclays in Britain, are considering moving their investment banking operations to another country. In the case of UBS, such a move could help them escape Switzerland's new 19 per cent capital requirement. Recent news reports, however, suggest that Swiss regulators may even favour UBS moving its investment banking activities abroad, so that their government no longer would face the risk of bailing out a company that is twice the size of the Swiss economy. Speculation about this then raised a question, posed in an editorial in this newspaper: "Any takers?"
You have viewed your allowance of free articles. If you wish to view more, click the button below.
Read Full Article »