I am of the opinion that it would in almost perfect certainty bring about further disasterous change in the banking industry.
My logic comes from the notion that there should be utmost trust in all activity to do with banking. This is not an industry that you want to populate with people skilled at sculduggery. The regulation of the American banking industry which is at the heart of the negative changes we have seen worldwide would have us believe otherwise.
The problem emerges from political science concepts of freedom put into practice through adherence to laws and frameworks for behaviour!
Under the negative freedom aspects of law applied to banking transactions within the United States and worldwide through banks operating in America, there adherence to statute law is seen as the basis for banking business activity. This goes so far as the Federal Reserve Bank insisting that Barclays and other banks have a set of books on their shelves that spell out the laws to which banks operating in the United States must adhere. It does not take too much immagination to assume some bright spark might read these laws and find a loophole. In the case of negative freedom, which drives American liberalism, big and small L, Americans assume that if the law says they can't do something, it's probably ok to do it!
While this leads to a lot of creativity, it is the framework of a morality that condoned and produced slavery. Using statute law to dictate right and wrong is pretty well flawed.
In the UK in the banking sector, there was more adherence to principles of positive freedom based on religious concepts of what was and is wrong. Barclays, a Quaker bank, had a reputation of being very moral in its business dealings. Prayers were common practice before business. A man's word was contractual.
Combine American negative freedom concepts with British positive freedom concepts in the competitve sphere and you ultimately get a breakdown of positive freedom ideas! It's always more fun to outwitthe rule maker!
This is why jailing bankers is not a good idea. There are always people in positions that can take the system for what it's worth. Believe me .... always!
This is the flaw with negative freedom. It leads to creative solutions, but amoral ones. It is what is fundamentally wrong with American politics and the business of banking in America .... In my humble view!
Ask me what the solution could be, or perhaps you know!
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