“It was the best of times, it was the worst of times”. In 1999, Wall Street was booming, a result of de-regulation and financial engineering. “Golden Boys” strutted in £2000 suits, bought lavish condos and drove supercars. Ten years and two busts later, global banks had brought capitalism to its knees.
Yet for all the mistakes and greed, strong and empowered banks are key to healthy economic growth. Banks are very efficient money-creators. They can take a deposit of £100 and add another £50 to £150 to the economy through credit, the lifeblood of the economy. Their success has been the hallmark of a strong economy, ever since the Medici funded Florence’s meteoric rise in the 15th century.
