Financial Times FT.com

Originative sin: the future of banking

By John Plender

Published: January 4 2009 19:12 | Last updated: January 4 2009 19:12

Analysis

For the late John Kenneth Galbraith, an acute observer of market folly, finance and innovation were fundamentally incompatible. Every new financial instrument, he said, “is, without exception, a small variation on an established design, one that owes its distinctive character to the ... brevity of financial memory”. The world of finance “hails the invention of the wheel over and over again, often in a slightly more unstable version”.

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