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It is really sad that now all the renowned international banks want everything guaranteed by governments — their lendings, their borrowings by way of deposits from the public, inter-bank borrowings and pretty much everything else.

It seems that risk management has gone out of the window as far as banks are concerned, after they have played fast and loose in the last few years. Why should they then be rewarded with fees and interest and profits? No risk, no reward. It appears that all banks have to be nationalised by their respective Governments and only sovereign risk will have to be assessed for lending for any purpose.

What a comedown for banks. One assumes the US’ leading financial brains are to be credited with making a mockery of all big lending institutions.

Mohan Sivaswamy Auckland, NZ

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