43
riskier investment-bank
activities in order to
operate more freely.
Of course, US
behemoths such as
Citigroup, Bank of
america, and Jp Morgan
will also be affected. But
the universal banking
model is far less central
to the US financial
system than it is in
Europe and parts of asia
and latin america.
aside from its
implications for different
national systems,
the future shape of
banking is critical to
the broader financial
system, including
venture capital, private
equity, and hedge
funds. The Geithner
proposal aims to reign
in all of them to some
degree. Fear of crises
is understandable, yet
without these new,
creative approaches to
financing, Silicon Valley
might never have been
born. Where does the
balance between risk
and creativity lie?
although much of
the G-20 debate has
concerned issues such
as global fiscal stimulus,
the real high-stakes
poker involves choosing
a new philosophy
for the international
financial system and its
regulation. if our leaders
cannot find a new
approach, there is every
chance that financial
globalization will shift
quickly into reverse,
making it all the more
difficult to escape the
h
i
n
e
current morass.
a
c
l L
a
u Exclusive Macau Business /
P
Project Syndicate
april 2009
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