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Contest to shape the future of banking

The International Centre for Financial Regulation and the Financial Times launch an essay contest on Tuesday that seeks to advance the debate on banking regulation.

Entitled "How best to regulate the bank of tomorrow", the contest solicits scholarly essays of up to 5,000 words on five topics related to banking supervision in the wake of the financial crisis. The author of the best overall entry will win $7,500 and the best essay in each topic will win $1,500.

The contest is part of an effort to broaden the debate about the regulation of financial services, which has been dominated largely by industry groups, regulators and politicians.



In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (etg@eurotrib.com) on Wed Oct 7th, 2009 at 04:19:45 AM EST
[ Parent ]
I have very few ideas on this, which are
  • essential infrastructure should not be run for profit but for serviceability
  • retail banking and the payment and clearing system are essential infrastructure
  • money creation is being licensed for free by the monetary authority to private, for-profit entities, with various forms of implicit and explicit state backing of liabilities. This needs to end. Money should be created by being spent or lent directly into the economy, destroying any inflationary excess via taxation. Service provision by bank for this purpose is also essential infrastructure.
  • securities are credit instruments. Primary securities issues are investment through credit. Investment banking in so far as it provides the credit to issue securities or fund project is also essential infrastructure. The secondary markets for securities are speculation, also known as gambling, and not essential infrastructure
  • gamblers can continue to play at the casino of secondary securities markets, but we should not pay attention. It is the job of the regulatory supervisors to ensure that gamblers cannot bring down the essential banking infrastructure. Like all gambling, securities markets speculation is a sign of excess disposable wealth and income, and should be taxed heavily.


En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
by Migeru (migeru at eurotrib dot com) on Wed Oct 7th, 2009 at 04:45:37 AM EST
[ Parent ]
I think all profit related transactions should be subject to a tax which is levied according to the time the investment lasts. Effectively what you're trying to do is encourage societally worthwhile practice and punish those which are parasitic. I appreciate that a hundred financiers could debate the definitions of those for some time and come up with no conclusive answer, but I'll go with Lord Turner for starters.

EG Buy shares and hold them for a year and a day = tax exempt. Trade them back and forth in a day = punitive.
Forex trades may require different timescales.

keep to the Fen Causeway

by Helen (lareinagal at yahoo dot co dot uk) on Wed Oct 7th, 2009 at 06:45:24 AM EST
[ Parent ]

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