Lessons from the Nazis by the BoE

Generali

http://bankunderground.co.uk/2016/02/05/from-berlin-to-basel-what-can-1930s-germany-teach-us-about-banking-regulation/

Two of the country’s largest banks collapse. The subsequent panic brings the banking system to its knees and only a costly government bail-out prevents even greater catastrophe. A radical re-think of regulation is needed. No, it’s not London or New York in 2008. It is Berlin in the 1930s.

purch

Interesting blog piece, and the parallels are obvious.

The problem with formulating any regulation of the Financial system is that;

Risk is fluid, and changes frequently.

Liquidity can alter in an instant, and assets that were liquid can dry up and vica versa.

Management is always reactionary, and rarely can keep up with events let alone be ahead of them.

The German Banking Act of 1934 was drafted by Reichsbank officials and responded to the main causes of the crisis: high risk, low liquidity, and management failure

.......will always be the issues faced.