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Tuesday, April 17, 2012

''John Kay on the illusory nature of bank profits''

From Ian Fraser Blog

"In this speech the economist and author John Kay examined how the financial sector continues to make — or claims to make — returns-on-equity which are way in excess of any reasonable estimate of cost of capital.

Kay, a visiting professor at London School of Economics, examined various possible reasons but then focused on the fact that the  profitability reported by banks and duly signed off by their auditors is “in significant degree an illusion." 

see the video and read more

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