Tuesday, June 12, 2012

The More Bank Regulation, the More Bank Risk-Taking


Banks will become public utilities if trends toward super-regulation continue. Politicians in charge of this direction have no clue of the effect of such consequences.
The unintended result of all this? How will banks make money if more and more capital is tied up at minimal return?
There won’t be more business loans in such an atmosphere but there will be efforts to take more risks that can make up for earnings shortfalls. (See the Earl J. Weinreb NewsHole® comments.)





   






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