A Quote by Jose Angel Gurria
The whole banking sector in Mexico was literally bankrupt. For whatever reason, instead of intervening in the sector or supporting the banks, the government expropriated them. We went through the very laborious period of selling the failing banks to the wealthy people of Mexico.
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Temporary nationalization of the banks that are in very bad shape would mean basically that the government is the temporary owner. I always believe that the government should focus on its comparative advantages, and banking is not one of them. It should, therefore, if it nationalizes banks, sell them back to the private sector.
The big issue is how much money can the government infuse for the capitalisation of the banks when we have quite a few private banks doing well. Does the government of India really require this number of public sector banks?
Republican leaders have made clear they have no plans to use the power of government to stimulate the economy, invest in job creation and spur job growth. The Fed's plan is to give banks more money to finance the private sector job creation. But banks have ample cash now; they aren't lending, and the private sector is not creating the jobs. That is why we have 15 million people unemployed.
That's the problem with the financial sector. Banks and the financial sector live in the short run, not the long run. In principle the government is supposed to make regulations that help the economy over time. But once it's taken over by the financial sector, the government lives in the short run too.
People with banking experience haven't all flocked to the biggest banks; community banks and regional banks, along with smaller trading houses and credit unions, have some very talented people.
Investment banks manage to go bankrupt through their investment-banking activities, commercial banks manage to go bankrupt through their commercial-banking activities.
I have publicly talked about Mexico's need to open ourselves up to the participation of the private sector in the energy sector, however this doesn't mean privatizing state-run companies.
Without giving specific names, most of the significant American banks, the larger banks, are bankrupt, totally bankrupt.
I think there's a disconnect between political leaders and young voters around a lot of things related to the private sector. For example, a lot of politicians continue to attack big banks. While I'm not a defender of big banks, my sense is younger voters have had generally pretty good experiences with banks.
As many have pointed out, it is not clear that we need so many public sector banks. The system could be better off if they are consolidated into fewer but healthier banks.
It's just the banks who are the latest target of the American socialist left. There is a war on the entirety of the private sector. It is the private sector that employs most of you, that services most of you, that creates the economic prosperity that our nation has enjoyed - and there is a war on that private sector, and it's being waged from the Oval Office, and its foot soldiers are on Wall Street and in other cities around the country.
One of the things that the public sector banks need to do is to raise private capital from the market and not rely on government largesse.
Conservatives brayed that government should stay out of the private sector; liberals bleated for nationalizing the banks.
Regulation is necessary, particularly in a sector, like the banking sector, which exposes countries and people to a risk.
We survived for hundreds of years under the old banking structure. You'd have clearing banks, then merchant banks doing the racy stuff, and then building societies where you'd join a waiting list for a mortgage. But then banks started buying stockbrokers, doing mortgages, and you ended up with these big banking groups doing everything.
Instead of abandoning competition and giving banks protected monopolies once again, the public would be better served by making it easier to close banks when they get into trouble. Instead of making banking boring, let us make it a normal industry, susceptible to destruction in the face of creativity.
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