[lbo-talk] a fresh rant on the bailout

Shane Mage shmage at pipeline.com
Wed Feb 11 12:29:16 PST 2009



> Michael Pollak wrote:
>
>> One, besides the pleasure (which I would feel as well as
>> anyone) what exactly do we get of kicking out management?
>> Wouldn't we simply have to hire new bankers who we would
>> then have to get up to speed? Isn't it more a question
>> of re-regulating bankers, whoever they are?

This is a non-problem. There is a very large cadre of civil servants whose expertise is in running banks honestly and prudently. They are known as "Bank Examiners." If the higher managerial cadre of all the big banks were kicked out for their proven incompetence and replaced by bank examiners at civil-service salaries, the saving in "executive compensation", would alone go a long way toward stabilizing the financial system, while the banks would obviously be doing much better at their only legitimate functions: taking deposits and making loans.

Shane Mage


> This cosmos did none of gods or men make, but it
> always was and is and shall be: an everlasting fire,
> kindling in measures and going out in measures."
>
> Herakleitos of Ephesos



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