FT.com / Companies / Financial Services - Buffett warns on derivatives legislation
"In comments to reporters on Sunday, Charlie Munger, Mr Buffet’s long time business partner, said that the regulators, not the bankers, were to blame for the financial crisis for because they did not control the banks properly.
“When the tiger gets out and starts creating a lot of damage it is insane to blame the tiger,” Mr Munger said. “It is that idiot tiger keeper that … caused the problem and our solution is not to just beat the tiger but efforts to improve the tiger keeper.”
His point of argument is: if a terrorist successfully bombed a place (luckily it didn't happen recently), the police or national security is to be blamed. It would be nice to imagine what if the former CEO of RBS defended himself by pushing the blame to the regulators instead of apologising. "It is not our fault for the collapse of the financial institution. The regulators should have prevented us from making risky investment (Imaginary quote)." If Charlie Munger insisted on his view that regulators were to be blamed, then he should applaud the step to introduce the finance reform bill. Will this bill be passed? It will not be an easy one, considering that US is a strong supporter of free market.
“When the tiger gets out and starts creating a lot of damage it is insane to blame the tiger,” Mr Munger said. “It is that idiot tiger keeper that … caused the problem and our solution is not to just beat the tiger but efforts to improve the tiger keeper.”
His point of argument is: if a terrorist successfully bombed a place (luckily it didn't happen recently), the police or national security is to be blamed. It would be nice to imagine what if the former CEO of RBS defended himself by pushing the blame to the regulators instead of apologising. "It is not our fault for the collapse of the financial institution. The regulators should have prevented us from making risky investment (Imaginary quote)." If Charlie Munger insisted on his view that regulators were to be blamed, then he should applaud the step to introduce the finance reform bill. Will this bill be passed? It will not be an easy one, considering that US is a strong supporter of free market.
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