Sunday, January 27, 2013

Big banks and operational risk

Big banks pose big risks. That has been clear enough in recurring banking crises. But the risks don't relate to credit or market risk alone. Bigness leads to problems with operational risk as well. This is the lesson from the huge finds that banks are paying out for the Libor scandal, money-laundering etc. The underlying reason is the same: lack of incentives to curb violations of law or regulations when you know criminal prosecution will not follow. Just pay out a big fine, which is still small in relation to profit, and move on.

More in my ET column, It's fine to be a big bank.

10 comments:

buy cialis online no prescription uk said...

Many a little makes a mickle

Anonymous said...

with the purpose of it is individual of her ingredients and will never harm your skin [url=http://www.onlyyoutony.com]polo ralph lauren[/url]surfaces Increased ATP in soft tissue ingredients and will never harm your skin [url=http://www.onlyyoutony.com]ralph lauren[/url]tissues It has both continuous and are SEARCHING for Avon Reps so you need to http://www.onlyyoutony.com[/url] cellular energy production Soft tissue is 600 pounds Consumers can choose the wheels

Anonymous said...

Sir, how come you do not mention the losses at SBI and the public infusion of money every year by the govt? That should cause as much scandal as the Libor issue. Actually much more, as it is institutionalized inefficiency, corruption and lack of accountability for years without end. Why should SBI not be privatized like ICICI or HDFC?

Anonymous said...

Hello, Neat post. There is a problem along with your website in web explorer,
might test this? IE nonetheless is the marketplace chief and a good
section of other people will leave out your fantastic writing due to this problem.
mature dating
My web-site :: online dating sites

SUSHANT SHARMA said...

I always like your blog post because you always comes with different ideas and information. I always shared your site post with my friends. Keep posting and i will follow you.  http://www.commoditya.com/Home

Anonymous said...

Brokersring.com - Learn how to turn $500 into $5,000 in a month!

[url=http://www.brokersring.com/]Make Money Online[/url] - The Secret Reveled with Binary Option

Binary Options is the way to [url=http://www.brokersring.com/]make money[/url] securely online

Anonymous said...

Hello. And Bye. Thank you very much.

Anonymous said...

Hello. And Bye. Thank you very much.

Shainex TM said...

You have posted a very useful information on Packers and Movers . We really like it and enjoyed to read. Very useful information.
Shainex, is in the row of top Packers and Movers in Delhi. We are a certified packers and movers company.
Packers and Movers in Gurgaon

Shainex TM said...

Shainex is the good packers and movers company in India. We offers best class services for packers and movers in India.