It is dangerous to equate the complexity of some financial products with social uselessness, which is essentially what Lord Turner has done. Collateralised debt obligations (CDOs) are a good example. These instruments allow a single type of investment to...
Much has been made of the comments made by Gordon Brown in his interview with the FT that bonuses need to be linked to long-term performance. This is true, but it is important to recognise the context in which his comments are made. Bonus culture is...
Illiquidity has been a major factor in the recent global financial crisis. Losses arising from residential mortgages led ultimately to a broader uncertainty over the ability of banks to meet other financial obligations. This led to a reluctance in the money markets to...
