Aug. 8 - Reuters Columnist James Saft says investing in banks is like planting in your front yard blind-folded, it's really risky.
I'm James shaft Reuters columnist. The standard chartered affair in which their keys by the New York State regulator having. Essentially money -- huge amounts of money for the Iranians against US laws. He's both an incredibly interesting story an apostle. It's unclear what exactly they did it's unclear what tendency they'll -- in the end. And it's extremely unclear whether or not the regulators will get themselves together and persecute a gore simply. But one conclusion I think we can draw from this these that it's. An excellent example of a lesson we should up learned along time ago. Investing in banks is essentially like planting mines in your own front yards while wearing a blindfold. It's very risky you simply do not now with organizations of this size and this complexity. And with this kind of ethical track record what is going to blow up in your face next. We've had so far this year HSBC accused of money laundering for Mexican drug lords. We've had JPMorgan. Having trading debacle in London which demonstrated though it wasn't huge but they weren't in control of their own risk management processes. And we've had the Barkley is Libor scandal which in the end probably won't be called the Barclays Libor scandal because many other people will be involved. The take away for investors is banking is an excellent. Industry. If you work. But committing capital to it especially equity raise capital is probably not a fantastic idea.