Nothing except competition limits the capital requirements

Reader comment on: Blankfein Goldman Sachs Annual Letter

Submitted by Lyle (United States), Apr 8, 2010 08:40

If party A decides that it needs to raise its capital requirements, Wall Street will crucify it. Recall Chuck Prince (ex Citi Ceo) and his comment that he knew the whole subprime mess would end badly but he could not get out, because money was still being made off it, and were he to stop the Board and Wall Street would oust him. The issue is that because of the demands of Wall Street it takes a cop to make bankers behave. We have seen to many examples over history of bad behavior of bankers 1907, the late 1920s the S&L crunch, the Latin American Debt crisis and the current issue. Bankers have proven they follow the herd, and engage in group think, so they need a cop to make them behave.


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Title By Date
⇒ Nothing except competition limits the capital requirements [132 words]LyleApr 8, 2010 08:40
Capital requirements [45 words]J.JohnsonApr 7, 2010 10:35

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