Wisdom on financial regulation

As a hedge funder, I'd love to see banks' proprietary trading limited (I hate competition), and it is certainly conceivable that a bank could blow itself up through unwise prop activity. Yet the vast majority of failed and nearly failed banks didn't have meaningful prop books. They made foolish decisions in ordinary lending activity.

That's HFM, who apparently is anonymous.  The post is interesting throughout and hat tip goes to Interfluidity at Twitter.


Comments for this post are closed