International Banking: What Next?

In the latest of its special reports, The Economist delves into the present condition of, and future for, international banking. Note that their definition of banking is rather broader than what we generally use in this country, including also Wall Street firms and other players in the securities markets, in addition to pure banks.

The report is well worth reading for its comprehensive scope, hitting all the major issues: the perils of securitization, the failures of risk management, the downsides of key accounting rules, how pay schemes can be changed to give better incentives, how management can improve, and what regulators should be doing to prevent future crises of this scope.