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The lesson is presumably that a bank should spread its bets. Here's the Central Bank of Cyprus in December 2012: When one invests over 100% of one’s capital
by j-g-faustus 13y ago
The lesson is presumably that a bank should spread its bets. Here's the Central Bank of Cyprus in December 2012:
When one invests over 100% of one’s capital in a single
financial instrument – even if that instrument is considered
low risk – it is indicative of poor risk management.
[..]When bankers do the same with investors’ money –
because their bonuses are linked to short-term income
while the losses are underwritten by the taxpayer – the
same behaviour is more than just poor risk management – it
is ‘casino banking’. [1]
So it looks more like Lehman Brothers.
[1] http://www.centralbank.gov.cy/nqcontent.cfm?a_id=12472&lang=en http://www.centralbank.gov.cy/nqcontent.cfm?a_id=12472&l...