The fundamental problem with banks is what it's always been: they're in the business of banking, and banking, whether plain vanilla or incredibly sophisticated, is inherently risky.
Sentiment: NEGATIVE
You want banks to take some risk, but intelligent risk.
Banking is a very treacherous business because you don't realize it is risky until it is too late. It is like calm waters that deliver huge storms.
Banks are run by executives, and executives protect themselves, and that does not always mean that banks are going to behave rationally.
Banks are an almost irresistible attraction for that element of our society which seeks unearned money.
Banks need to think through their ethics very carefully, and many have done so. I don't know any bank that dismisses the concept of ethical banking.
I happen to know a bit about banking.
Commercial banks are very good for certain businesses, like loans and guarding other people's money. They're not great investors or entrepreneurs.
People in retail banks are not smart. They have a business model that's quite difficult to not make money out of - but still they somehow manage it.
Banks are there to support businesses that have justifiable needs.
Instead of abandoning competition and giving banks protected monopolies once again, the public would be better served by making it easier to close banks when they get into trouble. Instead of making banking boring, let us make it a normal industry, susceptible to destruction in the face of creativity.