Banks are creating a haven for risk

Author: | Published: 1 Jul 2007
Are banks following the herd?

European central banker Alexandre Lamfalussy last month challenged banks and their advisers to tackle a system he labelled a "fertile breeding ground for excessive risk taking."

In a keynote address to the International Capital Markets Association (ICMA) in Berlin, Lamfalussy said banks are posing "moral hazards" and "succumbing to the temptation of herd behaviour". Delegates at the ICMA conference listened as...