Wall Street's Dirty Little Secret

Tunku Varadarajan, The Daily Beast Bankers do not deserve bonuses this year, at least not in the Western world. And I don't say this from atop some moral or aesthetic or populist high horse. Instead, my arguments are mostly economic. Banks are making money because they're borrowing at ridiculously low rates from the public and central banks and then investing in higher-yielding government securities. The banks receive deposits from savers (on which they pay negligible interest) and then leverage it several times by borrowing from other banks, or the central bank. LIBOR (the rate at which banks borrow from each ... Leer más