Investment banking has, in recent years, resembled a casino, and the massive scale of gambling losses has dragged down traditional business and retail lending activities as banks try to rebuild their balance sheets. This was one aspect of modern financial liberalisation that had dire consequences.
Meaning of the quote
Investment banks have been acting like casinos, making big risky bets that led to huge losses. This has hurt regular businesses and people who borrow money from banks, as the banks try to fix their financial problems. This is one part of the modern financial system that has caused serious problems.
About Vince Cable
Vince Cable is a British politician who served as the Leader of the Liberal Democrats from 2017 to 2019. He has been a Member of Parliament for Twickenham, and also served as the Secretary of State for Business, Innovation and Skills in the coalition government from 2010 to 2015.
More quotes from Vince Cable
When my job was attempting to predict future economic developments for the Shell oil company, I was frequently reminded of an Arabic saying: ‘Those who claim to foresee the future are lying, even if by chance they are later proved right.’
British politician, leader of the Liberal Democrats (born 1943)
Investment banking has, in recent years, resembled a casino, and the massive scale of gambling losses has dragged down traditional business and retail lending activities as banks try to rebuild their balance sheets. This was one aspect of modern financial liberalisation that had dire consequences.
British politician, leader of the Liberal Democrats (born 1943)
The degree of leverage now being reversed is staggering, and the underlying global imbalances – notably between the savers and the spenders – will require long and painful adjustment.
British politician, leader of the Liberal Democrats (born 1943)