Banks Behaving Badly

The LIBOR scandal is the result of greedy banks. But banks are no greedier today than they were decades ago. The difference is now banks are so big, and involved in so many activities (investment banking, commercial banking, insurance, underwriting and derivatives), they continually have large conflicts of interest and are unwilling to create meaningful “Chinese walls” between departments. Absent a complete separation of activities, these problems will persist.

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