By Stuart Gittleman and Emmanuel Olaoye
NEW YORK, Sept. 19 (Thomson Reuters Accelus) – The “extreme money” and “voodoo banking” that are dominating the global financial system are too smart, too fast, too greedy, too self-absorbed and far too dangerous for traditional legislation and regulation, a veteran banker told Thomson Reuters.
Efforts to prevent another financial crisis are likely to fail unless lawmakers and regulators understand that the forces that drove the crisis of 2008 go back several decades. While keeping an eye on the past, the overseers should also look for the potential risks of proposals claiming to promote growth, and how they are disclosed, Satyajit Das says in his book, Extreme money: masters of the universe and the cult of risk (FT Press, August 2011). (more…)