Break trough Banking by Siebe Huizinga

Author:Siebe Huizinga [Huizinga, Siebe]
Language: eng
Format: epub
Published: 2018-05-01T16:00:00+00:00

Pieter’s arrival kick starts discussions between Duke and Ali about what to expect once they have their license. They explore two extreme scenarios.

The negative scenario is that, as a newcomer, their concept threatens the established order. The financial world will resist bunq because it undermines existing structures.

The positive one is that bunq is neither a threat to, nor a solution for, the banking problem. Payments are such a small part of the money industry that there will be no resistance.

Duke and Ali hope that their true sting is in the change of paradigm, as they mentioned in their letter to Docters van Leeuwen. bunq as proof of concept. A manifestation of something that sounds like a crazy fantasy, but which proves that doing a better job is possible. If one party achieves success by reasoning from the point of view of the client and society, the model is bound to sell itself. Then, the banks will be in trouble. It’s already happening with a number of mechanisms thought up by non-bankers, like crowdfunding and companies selling their bonds in order to finance themselves.

New legislation is cropping up that gives them hope. In 2010, Economist Paul Volcker, former chairman of the Economic Recovery Advisory Board under President Obama, proposed a law that should make it harder for banks to take risks. In the future, they will not be allowed to act purely for the sake of financial gain. Instead, they will have to be able to prove a connection between their products and the needs of their clients. In terms of hedging (the covering of an investment risk by making another investment) he wants the risks to be specific, identifiable and defined.

With Obama’s support, the bill has since been running through the maze of amendments and lobbies, and will soon be put before the five federal supervisors who make the final decision. Passing the so-called ‘Volcker Rule’ would result in great reform for the American banking sector.

And a vital one too, because without reform, a new financial crisis is only matter of time, Docters van Leeuwen predicts. ‘And this time, it will go really fast.’ Some banking products are, as investor and philanthropist Warren Buffett puts it, financial weapons of mass destruction.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.