Banking Deregulation

Pascal-Emmanuel Gobry makes the case for a deregulation of the entire financial system, as well as some external limitations on how large a bank can become.

I’m always sympathetic to deregulation, especially massive deregulation, and his plan seems pretty good to me.  I don’t know if the old partnership model would necessarily work as well as he suggests, but I doubt it could be worse than Too Big To Fail.

2 thoughts on “Banking Deregulation

  1. Over a year ago I wrote an article “Regulating financial risks” (it was also reprinted by a couple of financial websites like Stockpedia).

    http://gregpytel.blogspot.com/2011/03/you-cannot-regulate-risk-self.html

    http://www.stockopedia.co.uk/content/why-you-cannot-regulate-systemic-financial-risk-54717/

    I stated the obvious, that to fix the financial system:

    – it has to be deregulated (rather than more regulated as it is quite often argued);

    – those running it must take personal responsibility/liability (this can be achieved for example by partnerships, abut there are other legal forms that can do this too).

    Today I have read your blog post which repeated my core arguments (without giving credit to the real source, i.e. myself).

    Well, draw your own conclusions…

    Sincerely

    Greg Pytel

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s