Post-crisis bank regulation and financialised bank business models

This paper discusses major structural reform initiatives in the UK, the US and the Eurozone that aim to de-risk and recapitalise national and global banking to make it safer. By focussing on three post-crisis case studies and new types of risk at Barclays, J.P. Morgan and UK retail banking that post-crisis reforms fail to identify, we argue that shareholder value driven business models at banks are responsible for new forms of risk taking as well as the old ones. The conclusion is that banking reforms can de-risk banks only by radically reforming financialised bank business models.