Lastly Mr Soros said that the practice of securitizing bank assets had greatly added to systemic risk and must now come under tighter controls, including requiring banks to limit proprietary trading to their own assets in order to protect depositors.
“Banks must use less leveraging and accept risk on their investments, they should not be allowed to speculate on their own account with other people’s money,” he added.
“This may push proprietary trading out of banks and into hedge funds which is probably where they belong.”
Mr. Soros runs a hedge fund, not a bank.
Banning the banks from this activity will make it more profitable for hedge funds.
Nothing is quite as much fun as talking your own book, is it?