'Double or Quits' Has Never Been an Advisable Trading Strategy
Why long-term issues need to be addressed to resolve short-term problems
The UK government has announced a second wave of support for the banking sector. In our view this is a path which should only be followed if there is a clear accompanying intent to resolve some of the underlying structural issues in the financial system.
Calls for 'Increased Regulation' are a common 'knee-jerk' response to financial failures; but this is not a panacea, and does not necessarily get to the real root of the problem.
In our view, two of the many measures that should be pursued are (i) A restructuring and simplification of the financial system, and (ii) Holding non executive directors more directly personally accountable for their actions, and, perhaps more importantly, their inactions.