Financialisation and the system

Ismail Ertürk gives his thoughts on the structural causes of the current financial crisis

Although the current rhetoric by the world's governments promises better regulation and restrictions on excessive pay in the City, it fails to enlighten us about why banking was allowed to change the way it did over the last two decades, with official support, and what is going to be regulated once the dust has settled. A key problem in banking before the crisis was the opaqueness of banks' revenue sources and business models. In investment banking, traditional revenue sources from serving corporate customers have been replaced by bonus-driven principal transactions that are promoted as...