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: VOL 47 No. 08 February 25 - March 02, 2012
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Obama Ducks the Banking Challenge
(8th August 2009)
T T Ram Mohan
 
The US has followed a cautious approach in tackling the current crisis in banking. It has refused to tackle the crisis head on, it has instead followed an “endure and wait” approach. What of preventing future crises through regulatory reform? The Obama administration’s proposals to prevent another banking crisis are just as tepid and refuse to grasp the nettle in a number of areas – in preventing concentration, containing compensation levels and dealing with important human resources issues. The US Treasury proposals do not give the impression of going far enough in tackling the issues highlighted in the present crisis.
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