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Easing Capital Rules Would Lead Banks Away From Vital Lending

"In his excellent comment “Star traders, rip-offs and old-style bankers” (August 19), John Plender observes that universal banks take excessive risks in their various trading activities. Excess risk-taking is due to a flawed focus in banking on raw return-on-equity measures and is greatly encouraged by government guarantees that allow bankers to benefit from the upside of their investments without fully bearing downside risk."

Read the full article here: The Financial Times, Letter to the Editor, Anat Admati

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