Friday, May 13, 2011

virtual casino

I am concerned about a powerful combination of factors: increased concentration in the financial services sector, where profits are driven by how well one trades rather than the prudent extension of credit that furthers commerce; a resulting outsized-compensation system which disproportionately draws talents away not just from traditional banking but other professions crucial to economic growth; a government regulatory regime which both enables what I have described as this "virtual casino" to continue, notwithstanding its role in precipitating the financial crisis—and which, by not recognizing the difference between Main Street and Wall Street banks, financially burdens the "real economy."

Robert G. Wilmers, CEO M&T Bank, letter to shareholders 2010