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.
6 responses so far ↓
1 Peter Whale // Jan 17, 2013 at 9:52 am
The Euro itself has been more disastrous for jobs and commerce than any other product. The full extent of its havoc is still to be reached.
2 Frances Coppola // Jan 17, 2013 at 10:35 am
What Peter said.
3 Tim Newman // Jan 17, 2013 at 1:23 pm
“Intransparent”?
4 Philip Walker // Jan 17, 2013 at 2:48 pm
Tim N: ‘Please forgive him, he’s from Berlin.’
5 Diogenes // Jan 17, 2013 at 9:33 pm
I suspect that we will get an equity release scandal soon
6 Kalle // Mar 7, 2013 at 2:38 pm
The biggest financial problem is Pension. In about 26 EU member states Pension is the biggest Risk.
The risk close to that are.
Incompetent politician
and
Incompetent voters.
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