November 7, 2011

Excerpt: Mike Mayo's Exile on Wall Street - WSJ.com

A recently popular opinion from one of the few analysts who early on called out the banking sector for too-risky investments/activities and was chastised for it before the bottom fell out of bank stocks and the financial crisis precipitated by their house of cards.

"To fix the banking sector, should we rely more on government regulation and oversight or let the market figure it out? Tougher rules or more capitalism? Right now, we have the worst of both worlds. We have a purportedly capitalistic system with a lot of rules that are not strictly enforced, and when things go wrong, the government steps in to protect banks from the market consequences of their own worst decisions. To me, that's not capitalism."

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