Warren Buffett has an elegant solution for the thorny problem of too-big-to-fail banks: Put the bankers' bank accounts on the line.

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    Feb 27, 2010 9:24 PM GMT
    " ... Buffett has been criticizing overreaching corporate managers and complaisant directors for decades. But the question of how to motivate good corporate behavior has taken on new weight as Washington debates reining in the financial giants whose missteps brought the economy to its knees two years ago.

    The Obama administration last month proposed separating banks' proprietary trading activities from their federally subsidized deposit-gathering and lending ones. Other proposed rules would increase the amount of capital banks hold against losses and how much cash they carry to deal with a surge of withdrawals.

    But Buffett said there's a simpler way to cap risk-taking: Forcing lavishly compensated CEOs to take responsibility for assessing the risks at their firms -- and putting their own wealth at stake, to boot. ... "

    http://money.cnn.com/2010/02/27/news/companies/berkshire.accountability.fortune/index.htm?hpt=T2

    icon_lol.gif ... Make them keep their money in their own banks ... icon_lol.gif

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    Feb 27, 2010 9:34 PM GMT
    Caslon13000 said" ... Buffett has been criticizing overreaching corporate managers and complaisant directors for decades. But the question of how to motivate good corporate behavior has taken on new weight as Washington debates reining in the financial giants whose missteps brought the economy to its knees two years ago.

    The Obama administration last month proposed separating banks' proprietary trading activities from their federally subsidized deposit-gathering and lending ones. Other proposed rules would increase the amount of capital banks hold against losses and how much cash they carry to deal with a surge of withdrawals.

    But Buffett said there's a simpler way to cap risk-taking: Forcing lavishly compensated CEOs to take responsibility for assessing the risks at their firms -- and putting their own wealth at stake, to boot. ... "

    http://money.cnn.com/2010/02/27/news/companies/berkshire.accountability.fortune/index.htm?hpt=T2

    icon_lol.gif ... Make them keep their money in their own banks ... icon_lol.gif



    Warren Buffet is a good egg. He should be our Treasury secretary.
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    Feb 28, 2010 1:31 AM GMT
    Very capitalist too. If you venture and fail, you fail. That's totally free market and could fly pretty well in the States.

    The reality right now is if you venture and you command billions of dollars in fake, non-existent cash yet representative of the livelihoods of millions of people, then you do not fail if you fail, but rather get saved, through socialism for the rich, by a government too far in collusion with industry interests to understand a real free market.