On Monday there will be a report issued in respect of the banking industry, preventing a bank being too big to fail, well let me into a little secret.
Now I used to work for an Investment Bank, which was taken over after big bang by a Clearing Bank. Now then, ihe Investment Bank was structured under a Holding Company, with all the various subsidiaries being legal entities in their own right. So, if one bit failed, it failed, but not the whole structure.
Now this is in computer terms, a Firewall, and enabled the Investment Bank to prosper, because one aspect was that we held the client money completely separately, unlike the Clearing Banks which put all your money together. If you like it was the clients money, and not our money.
We also had to know our clients, very well, and what they wanted to achieve, and what we had to achieve on their behalf, which is why there was something called KYC, Know Your Client.
Now some may say what on earth has this got to do with the Cafe, well it has because the implications of the crisis in banking is effecting us all, and when you listen to an 'expert' on the media remember just who got us into this hole, and who did not speak out when they were making loads of money, especially the accountants, the auditors, and to a certain extent the computer programmers who did not develope systems which would have prevented all this happening in the first place.