This process got underway with the Basel III regime and now needs to be rigorously implemented. Having a mechanism that facilitates the orderly resolution or restructuring of large, international and highly interconnected banks in the event of difficulties – otherwise known as the “too big to fail” problem – is equally important in future.
In the world of finance, we, as bankers, should be familiar with swindles that have assumed the character of ‘Ponzi finance’ - a type of game in finance played by the archetypal swindler, Charles Ponzi.