Seven years after the start of the financial crisis, banking reform is still very much a work in progress. Or should that be regression?
The only constant is that the burden of regulatory requirement and diktat keeps on growing. Little good does it seem to be doing either. Yet “job only half done” remains very much the prevailing narrative among politicians and regulators.
Paul Volcker, the former Federal Reserve chairman who gave his name to a new rule that limits commercial banks from using deposits for risky proprietary trading, once confided that his rule would only work if it were kept simple enough to be written on half a page.