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Cliff hangers.

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Vincent
PositionLetters - Letter to the editor

[ILLUSTRATION OMITTED]

I am interested in risk management and have written a few papers on the subject. The examiner for paper P3 echoed my sentiments exactly (Study notes, February).

Risk management has often been interpreted with such a narrow vision as to be useless for most organisations, not only for those that are subject to Basel II. I disagree with those who argue that directors couldn't have predicted that the US sub-prime mortgage crisis would develop and the money-market tap would be turned off. It seems odd that few banks took note of the risk until September 2008 when Lehman Brothers et al fell, although talk about the risk of the sub-prime mortgages had been around for 18 months before this. These banks headed for the precipice like lemmings, chasing short-term profits and scandalous management bonuses.

I am pleased that President Obama is trying to stop AIG management bonuses being paid out of bail-out money--but AIG...

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