Tuesday, April 07, 2009

Mboweni: "That era of Yankee capitalism is over... Bring boring banking back" - Hear hear

Banking needs to go back to being the boring business it once was. Have you noticed how well banks do these days? They charge you for giving them money, for drawing it, when their own service ought to be a safe place to keep a portion of one's wealth. That's it.
clipped from www.sowetan.co.za

He could state confidently that the world finance and banking system "the way we knew it" had gone.

"That era of Yankee capitalism is over and those days when investment banks received income from off balance sheet activities are over."

It was time for a "back to basics" approach, with banking being the boring businesses it is supposed to be.

He was concerned about the effect of raised electricity tariffs on inflation.

"Why don’t we have a once-off tax on all to pay for the



electricity recapitalisation programme? I’d pay for it and those people inconvenienced by power cuts would pay for it."

Turning to the automobile industry, Mboweni said he was aware that the sector had asked government for a cushion going forward.

"But my question is - who is going to buy these cars you want to produce?" - Wenn

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