Regulator control of Banks weakens sharply
The financial system is at even greater risk of crashing now that it was in the lead-up to the collapse of Lehman’s bank in 2008.
That is the conclusion of TWO separate reports issued in the past 24 hours, one from the Bank of England and the other from the US Federal Reserve.
The crisis is looming because Western banks have quietly expanded their lending in the less regulated Asian markets. And regulatory changes brought in amidst intense lobbying by the banks themselves, have made matters WORSE, by blurring the lines of oversight.
Six years after the crash, the financial system is no nearer to a transparent system whereby every transaction between banks can be traced and tracked, so that a dollar which goes into Citibank in New York, and then re-emerges out of the Caymans into UBS Zurich can be identified.
Scandalous but hardly surprising.…