I am increasingly aware that people are now asking whether we can do without the investment banks – which are the toxic element of the banking industry. And increasingly I think the answer is an unambiguous yes.
Sure we can. Plenty of places don\’t have investment banks: no one had them three hundred or so years ago.
But you might also want to note that the absence of a vibrant Pyongyang capital allocation mechanism, the State monopoly on such in Havana, seems, to put it politely at best, somewhat deficient in the production of economic growth.
We can certainly do without the investment banks: the thing is, do we want to?
I admit I haven’t formulated the whole logic of the bank free alternative, yet. But it is something we need to do.
And I\’ll guarantee you that when you do you will have reinvented the investment bank.