Sunday, February 13, 2011

Roubini : The financial supermarket model obviously has not worked

Nouriel Roubini :" ......It's a good start, but I am thinking in a more radical direction. The financial supermarket model obviously has not worked. An institution where you have, all in one place, commercial banking, investment banking, hedge funds, insurance and lots of other financial services becomes too complex to manage. No CEO can effectively monitor that. So, this all needs too be broken up into pieces. If you have many different institutions which do different types of financial services, none of them will be systemically important...."   Nouriel Roubini was commenting on the US President Barack Obama has introduced plans for financial reform, including the so-called Volcker rule

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