http://news.bbc.co.uk/1/hi/business/8104340.stm

+++++
Mr Darling has said that the current regulatory system is not to blame
for the credit crunch, blaming instead the bosses of financial institutions.
+++++

Unbelievable. The duty of regulation was to protect the economy and to
protect the tax payer against having to bail out the banks. Regulation
was there to protect us from the self interested behaviour of the bank
bosses. It failed.

+++++
Too many people did not understand the risks to which they were being
exposed,
+++++

The big players in the credit crunch did understand the risks. They
played using a stragey to maximise their own expected wealth. They
weren't playing for the good of the UK economy. For most bosses this
straegy was successful and I suspect they would do the same again given
the chance. Fred Godwin did ok, it is the UK tax payer that lost.

If he wants to study the mathematics he would do well to start with game
theory before looking at modern financial theory and stochastic
analysis. He needs to understand why people did what they did to
understand what the *risks* actually were.

If Darling doesn't understand this there is nothing to stop it all
happening again. He says that the bank boardrooms were the problem but
surely that is exactly why we have regulation, to control problems which
arise when the interests of the boardroom diverge from the interests of
the tax payer.

I suspect Darling realises this and the current statements are motivated
by a need to deny governmental responsiblity. It is unlikely that we
will see a repeat of the disaster in the next 11 months, so who cares
what happens after that.

On Wed, 17 Jun 2009 12:09:32 +0100, Nick wrote:


http://news.bbc.co.uk/1/hi/business/8104340.stm

+++++
Mr Darling has said that the current regulatory system is not to blame
for the credit crunch, blaming instead the bosses of financial institutions.
+++++

Unbelievable. The duty of regulation was to protect the economy and to
protect the tax payer against having to bail out the banks. Regulation
was there to protect us from the self interested behaviour of the bank
bosses. It failed.

+++++
Too many people did not understand the risks to which they were being
exposed,
+++++

The big players in the credit crunch did understand the risks. They
played using a stragey to maximise their own expected wealth. They
weren't playing for the good of the UK economy. For most bosses this
straegy was successful and I suspect they would do the same again given
the chance. Fred Godwin did ok, it is the UK tax payer that lost.

If he wants to study the mathematics he would do well to start with game
theory before looking at modern financial theory and stochastic
analysis. He needs to understand why people did what they did to
understand what the *risks* actually were.

If Darling doesn't understand this there is nothing to stop it all
happening again. He says that the bank boardrooms were the problem but
surely that is exactly why we have regulation, to control problems which
arise when the interests of the boardroom diverge from the interests of
the tax payer.

precisely....(neat post)
shame the bbc cannot produce better than your link with
all the free money it receives from taxpayers

I suspect Darling realises this and the current statements are motivated
by a need to deny governmental responsiblity. It is unlikely that we
will see a repeat of the disaster in the next 11 months, so who cares
what happens after that.

just so...
and of course that is the effect of game theory on the likes of
darling....who also put their own interests above the country...

such is the problem with no genuine constitution....

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