PES calls for tight grip on the financial sector 10 years after Lehman

14/09/2018

Lehman Brothers

The Party of European Socialists calls for a tighter grip on the financial sector 10 years after the crash of Lehman Brothers. PES president Sergei Stanishev said: “We are still dealing with the social consequences of the financial meltdown from 10 years ago. Our economies are weaker and our democracies are weaker as a result".

 

PES calls for tight grip on the financial sector 10 years after Lehman

 

The Party of European Socialists calls for a tighter grip on the financial sector 10 years after the crash of Lehman Brothers.

PES president Sergei Stanishev said: “We are still dealing with the social consequences of the financial meltdown from 10 years ago. Our economies are weaker and our democracies are weaker as a result. Those who say we are back to normal are either malicious or terribly uninformed. We need effective public control and safeguards over the financial system, because we can’t afford to have another similar crisis”.

“Market liberals believe very much in incentives but turn a blind eye on perverse incentives: bonuses, credit default swaps or high-frequency trading are such perverse incentives. We need to get rid of them. Naivety is a luxury we can’t afford. We need to regulate global finance or global finance will rule us. Confidence is fine but control is better”.