Sven Giegold, a German member of the European Parliament is on a mission to find them and stamp them out, Reuters reported.
The European lawmaker, who launched the competition with two non-governmental groups, wants to find the next financial product – such as subprime mortgage or collateralised debt obligations (CDOs) – that could unleash turmoil on the financial world.
“Financial products can be dangerous in several ways,” said Giegold. “They might be intransparent for investors, investing in harmful technologies or products, causing systemic risks or are unnecessarily complex.”
Although there is no prize for the winner, Giegold hopes the competition will spur supervisors and regulators into taking more action, such as banning certain high-risk products.
Pity their site is down. But it is. For I was going to enter the financial transactions tax. We know very well that this will reduce EU GDP by 2=4%. Which is rather more than any one specific product thought up by the financial industry itself.
True, not more than the effects of the financial crisis so far as a whole. But still more than any one product.