The Megabanks Mess (Kindle Single) Kindle Edition
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Top Customer Reviews
His essay is very suited to the Amazon `single' format (at around 1100 Kindle locations)--the author was able to give background information, describe the problem as he sees it, and give opinions on how to fix the problems--but does not go into the specifics of detailed fixes--as that would be way beyond a 'single'.
He starts with a review of the evolution of the financial/banking industry from the 1970s onward, including pressures that arose from stagflation and the changes due to deregulation--going through the repeal of the Glass-Stegall act and the eventual expansion of financial firms outside previously delineated limits.
He also reviews some of the other pressures resulting in the subsequent`mess', including the flaws inherent in the new system with it's focus on short term measures and profits, ever evolving complexity, and without necessarily considering the fiduciary duty to the clients of the new fiscal giants.
The author also discusses the flaws inherent in the current governance of the so-called megabanks and/or financial services industry including a loss of oversight by ineffective, uninvolved or conflict of interest laden Board of Directors.
He moves on to describe how the industry itself could change, however he rapidly discounts the industry's willingness or ability to do so.
The author then moves on to how government may/should need to step in.Read more ›
The material on corporate governance should be a wake-up call for boards in the financial industry and others. While pointedly relevant for board members and executives of financial services firms, the material should also be read by every finance or business student - and would make a great foundation for student case studies or industry corrective action plans as a part of their course work. As Mr. Allison indicates in the outset of the material, one hopes this serves to stimulate dialogue on this important subject in the corridors of the largest financial services firms, in Congress and among the press.
Allison laments the erosion of shareholder power over Wall Street banks, yet fails to account for the fact that if shareholders truly feel dispossessed, they need simply cast their dollar-votes elsewhere. Instead, the reader is subjected to a series of unimaginative prescriptions to reform Wall Street, including breaking up the big banks, strengthening the role of government regulation, and insisting that banks measure performance not through traditional profit metrics, but through subjective designations such as employee and customer satisfaction. In doing so, he fails to explain why presumably dissatisfied customers and employees appear to continue working for the banks today, and why they are contributing to a profit-making environment. Are we to believe that all of the banks' profits are the result of accounting tricks?
Unfortunately, Allison's book contributes little to the growing corpus of historical examination and policy recommendation surrounding the events of the past several years. The wholly derivative nature of this text and its Pollyanna conclusions are just enough to give the reader an idea of what a more thought-provoking epistle would look like.
Most Recent Customer Reviews
I have read a number of books on the problems created by the megabanks--problems almost certain to recur as the leaders of the industry eviscerate what limited protections were... Read morePublished 19 months ago by Interested customer
All of the purchases listed above have been up to my expectations. Some have not been totally evaluated due to the
other demands on my time; but even a somewhat cursory review... Read more
I've searched the web high and low for a copy of this and can't find anything??? I'd sure appreciate it if someone could sell, loan, give, share or whatever this eBook/document to... Read morePublished on January 22, 2013 by T. Zehrer
As a one time bank executive I read this book with interest. In my opinion the bank executives acted without prudence and against all sound lending principles. Read morePublished on November 22, 2012 by T. H. Davis
This summary of contemporary banking practices and problems provides necessary insider knowledge into how the latest economic disaster was produced by those practices and gives... Read morePublished on March 13, 2012 by Kirk Hughey
On paper, Herbert Allison would seem to have been a perfect person to expose the problems in the banking industry that precipitated the financial crisis. Read morePublished on January 1, 2012 by Amazon Customer
This author wants to jettison the Volcker Rule for the concept of "Using approved models of risk". Well, who approves the models? The banks? Pretty funny really. Read morePublished on July 10, 2011 by Gary Anderson
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