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...world economy is showing signs of recovery, stock markets are soaring and bankers are again awarding themselves big bonuses. But one year after the financial conflagration that devastated Wall Street and burned financial institutions around the globe, the main firefighters - central bankers, market regulators and government policymakers - continue to struggle with a central question: How do we prevent it from happening again...

Author: /time Magazine | Title: Braking the Banks | 9/28/2009 | See Source »

...stake too, ones that are more political and philosophical in nature: Should any bank be too big to fail? What should be done with financial activities that seem purely speculative and of questionable social use? How can the short-term, get-rich-quick mentality that drove so much market activity before the crash - and inflated those bonuses - be curbed? Is there a place for morality in the world of finance? (See the financial crisis after one year...

Author: /time Magazine | Title: Braking the Banks | 9/28/2009 | See Source »

...powers due to take place in Pittsburgh, Pa., on Sept. 24-25. Diplomats and analysts say that a growing convergence among nations on the technical details surrounding greater industry oversight may paper over a divisive philosophical gulf. The U.S. and Britain, with their instinctive support and dependence on free-market finance, are increasingly at odds with France and Germany, who are more skeptical about the benefits of unfettered capitalism and hope to win votes at home by controlling its excesses. But even among native English speakers, there's an intriguing debate taking place about the limits of finance, spearheaded...

Author: /time Magazine | Title: Braking the Banks | 9/28/2009 | See Source »

...Taming the Markets Regulators on both sides of the Atlantic are trying to limit abuses that led to the meltdown, such as the reckless issuance of subprime mortgages. In the U.S., the Treasury Department and lawmakers are seeking to bring greater transparency to the arcane world of financial derivatives by requiring the trading of them to be done through central clearing houses. Meanwhile, Trichet's group of central bankers wants banks to put up additional capital if they engage in especially risky types of financial market transactions. As the financial services industry braces for tougher oversight, it's keeping...

Author: /time Magazine | Title: Braking the Banks | 9/28/2009 | See Source »

...common opinion among economic forecasters--and has been for weeks. Also never mind that Bernanke's prediction record as Fed chairman hasn't been stellar. This is the man, after all, who told Congress in March 2007 that "the impact ... of the problems in the subprime market seems likely to be contained...

Author: /time Magazine | Title: The Moment | 9/28/2009 | See Source »

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