Econintersect: Here are some of the headlines we found to help you start your day. For more headlines see our afternoon feature for GEI members, What We Read Today, which has many more headlines and a number of article discussions to keep you abreast of what we have found interesting.
In America, the universal bank is a relatively new creation. It is 16 years to the day since the Glass-Steagall Act, a law enacted during the Great Depression that had the effect of banning universal banks, was repealed.
Glass-Steagall stipulated that traditional, relatively low-risk banking such as taking deposits and making loans could not be undertaken by the same institutions that were involved in higher risk investment banking activities, such as funding corporate acquisitions and trading securities.
As is now clear, traditional banking attracts one kind of talent, which is entirely different from the kinds drawn towards investment banking and trading. Traditional bankers tend to be extroverts, sociable people who are focused on longer term relationships. They are, in many important respects, risk averse. Investment bankers and their traders are more short termist. They are comfortable with, and many even seek out, risk and are more focused on immediate reward. In addition, investment banking organizations tend to organize and focus on products rather than customers. This creates fundamental differences in values.
As I have reflected about the years since 1999, I think the lessons of Glass-Steagall and its repeal suggest that the universal banking model is inherently unstable and unworkable. No amount of restructuring, management change or regulation is ever likely to change that.
Anti-government rally in Seoul turns violent (Al Jazeera) Police used water canons on thousands protesting South Korean President Park Geun-hye's labor and education policies. They were protesting against Park's plans to make the labor market in South Korea more flexible by giving employers greater leeway in dismissing workers and her decision for a government-selected panel to write the high school history textbook.
This Land Was Your Land (Foreign Policy) In Venezuela, land redistribution is not just an ideological imperative - it's how the regime rewards its friends and punishes its enemies.
>>>>> Scroll down to view and make comments <<<<<<
Econintersect wants your comments,
data and opinion on the articles posted. You can also comment using Facebook directly using he comment block below.
Print this page or create a PDF file of this page
The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.
Take a look at what is going on inside of Econintersect.com