“Derivatives and complex strategies are” one more reason why there needs to be firewalls between investment banking and commercial banking.
Yes, but the bigger issue isn’t commercial vs. investment banking. That really hasn’t been the issue. The real issue is that no one in the big powerhouses on Wall Street have any financial incentive to truly manage risk. Government is always there to backstop, and in the worst case, a CEO gets fired with a $20m severence package.
Bigger issue that needs to be solved in all of corporate America is the cronyism of boards of directors, something that largely went unaddressed with Sarbanes Oxley. Boards are all in the pockets of management and provide no true oversight. It is disgusting.