Financial ‘toxic waste’

The Wall Street Journal draws an apt comparison between the strict regulation of chemical companies, and the lack of effective regulation on financial firms. It comments:

‘Chemical companies are under strict government regulations about what kinds of toxic waste they can produce, where they can store it, and how they can handle it and dispose of it. But during the past five or even 10 years, financial companies have been allowed to create a vast amount of financial toxic waste without much, if any, oversight at all.

‘There were few rules on transporting, handling, or storing it. The labeling was inadequate at best. No one had any idea of how to dispose of it, either. It was the other guy’s problem. This is how all this stuff ended up in your local bank, money market manager, or pension fund.’

About Paul Hodges

Paul Hodges is Chairman of International eChem, trusted commercial advisers to the global chemical industry. The aim of this blog is to share ideas about the influences that may shape the chemical industry over the next 12 – 18 months. It will try to look behind today’s headlines, to understand what may happen next in important issues such oil prices, economic growth and the environment. We may also have some fun, investigating a few of the more offbeat events that take place from time to time. Please do join me and share your thoughts. Between us, we will hopefully develop useful insights into the key factors that will drive the industry's future performance.

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