Société Générale fraud case weakens banking industry

Given the world economic crisis, the "profound concerns" of some banks and the fraud case at Société Générale, Nikolaus Piper argues that better regulations are needed in the banking and finance markets. "In the long run, it is more important for the authorities to bring the regulation of the financial markets up to date and establish new standards for banking practices, than it is to come up with an economic programme. This applies especially to the USA. ... But Europe also needs to be consistent, as we see from the wobbly German and British banks. The institutes have a lot to do themselves; the best state regulations couldn't prevent a huge fraud such the one uncovered at the French bank Societé Générale. But those in charge must hurry to keep pace with innovations on the financial market."

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