Financial News
President Obama was greeted at the G-20 summit in this seaside resort Thursday with a plea by French President Nicolas Sarkozy to get more involved in resolving Europe's spiraling debt crisis.
"We need the leadership of Barack Obama," Mr. Sarkozy said after the two leaders huddled to start the meeting of the world's industrialized and large, developing nations. "We need the solidarity and support of the United States of America."
http://www.hispanicbusiness.com/news/2011/11/4/sarkozy_asks_obama_to_help_with.htm
CANNES, France, Nov 4 (Reuters) - The euro zone won verbal support but no new money at a G20 summit on Friday for its tortured efforts to overcome a sovereign debt crisis, while Italy was effectively placed under IMF supervision.
Leaders of the world's major economies, meeting on the French Riviera, told Europe to sort out its own problems and deferred until next year any move to provide more crisis-fighting resources to the International Monetary Fund.
http://www.reuters.com/article/2011/11/04/g-idUSL5E7M35XA20111104
Another aspect is that the environment in which they were able to make so much money by using tremendous leverage has certainly changed. It is highly questionable whether they can do that sort of business again, given that the balance sheets of these big banks are so opaque and so difficult to manage. So much so that I question whether any outside regulator can decipher and understand the risks that these banks have been taking. Actually, I question whether the banks themselves understand the risks that they're taking. I think there are so many interactions that I have to wonder whether anybody really understands the kinds of risks that are out there. All of which adds up to a very challenging environment for these banks to operate in.
http://www.caseyresearch.com/editorial.php?page=articles/economic-insights-lord-finance&ppref=CRX423ED1111B
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