EQUITY – Rodenberg Tillman & Associates

Banks, business as usual

December 1, 2014

Can you imagine that five years after the financial crisis, the financial system in Europe has still not yet improved? Banks still continue to package ‘risky financial products’ into special entities. Our bankers still behave the same as they did before the financial crisis. Why is this so? Bankers think they are better protected against the next financial crisis, because they have a higher percentage of equity on total assets. It’s business as usual all over again.

Banks: misplaced, misleading, and mistaken false arrogance

In November 2013, Professor Admati was in Amsterdam presenting her book “The Bankers’ New Clothes” and speaking about the false lobby of the Dutch National Employer’s Organization VNO-NCW on Dutch banks. The professor sees herself as “a voice in the wilderness” because banks in the Netherlands and Europe want to keep to the 3% requirement of equity on total assets.