Great suffering and waste has been inflicted by the runaway finance sector the past two decades. The compounding costs continue to bankrupt nations and still the bankers are back on top, enriching themselves at the expense of everything else. The evidence is obvious but never more clear than the fact that the fiduciary duty rule, that would require financial advisors to put the best interests of their clients ahead of their sales targets, has been sidelined once more.
Wolves have been aided and abetted by governments to keep devouring the sheep. Democrat and Conservative governments, same result: Bad guys still winning…9 years later and counting. See Financial crash anniversary recalls the risk of corporate greed:
As the evidence shows, including the FDIC’s most recent quarterly data, banking revenue and income are at or near all-time highs and loan activity is strong and steadily increasing as well.
The unavoidable conclusion, then, is that the industry’s deregulatory push is really about getting the bankers’ bonuses back to pre-crisis levels. That explains why the deregulatory focus is on weakening the capital, liquidity and derivatives rules along with the ban on proprietary trading (the Volcker Rule).
Those rules rein in the banks’ highest risk and most dangerous activities, which also happen to be the most lucrative activities that lead to the biggest bonuses.
With revenue, profitability and lending all up, there simply is no merits-based case to be made for deregulation. Equally important, the anniversary of the collapse of Lehman Brothers and the events that triggered the 2008 financial crisis should remind everyone of the dangers to a country forgetful of its past.