The financing of such companies should be separated from the deposit bank so as to prevent at least large-scale proprietary trading at the risk of the deposit bank, trading that would occur indirectly under the protection of the deposit guarantee scheme (Liikanen et al., 2012). What connections did our working group have with academic research?
Professor Marco Pagano, who currently chairs the Advisory Scientific Committee of the European Systemic Risk Board (ESRB), has in one of his papers wondered why it is that academic research has so little to say about the effects of the structural regulation of banks (Pagano 2014a).