It is pathetic that tax payers money is liberally spent / wasted to save banks and bankers for their greed and mindless risk taking with investors money. This only reflects poorly on the regulatory system and the regulator's performance. The raw material to run banks is public money and banks should not be allowed either to face a run or run away with that money. There should be a built in mechanism in banks to save themselves from risks by creating a fund taking contributions from banks themselves from out of investment income, investment managers from their bonuses and regulators from their income earned from regulated entities. Making tax payers, depositors including retirees to bear the burden for someones' faulty investments out of greed is something beyond tolerance and there is no business ethics in that. The author is fully justified in his arguments that money invested to save banks should have gone for some productive investments to fetch better return.
Dr.T.V.Gopalakrishnan
(This appeared in ET E paper dt 7/09/11)
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