Peter J. Wallison — Why are we still separating banking and commerce?

What could go wrong with allowing big business to generate the unit off account "out of nothing" in addition to banks?

The push is on to erase the line between banking and fintech.

The American Banker
Why are we still separating banking and commerce?

Peter J. Wallison, senior fellow at the American Enterprise Institute and former general counsel of Treasury between 1981 and 1985

Izabella Kaminska — Fintech and banking risk; cognitive dissonance de semaine

Thank god for the stream-lined logic of Mariana Mazzucato, innovation economist at Sussex University, who was on hand on Wednesday in the fintech session to remind the evangelists how financial innovation tends to increase not diminish rent extraction from the economic system.

Must-read on financing innovation. If pressed for time, you can just skip down to the above quote and read the rest on MM.

Short-termism goes hand and hand with rent-seeking. Real innovation rather than puff is long haul, the result of strategic investment.

The Financial Times — FT Alphaville
Fintech and banking risk; cognitive dissonance de semaine
Izabella Kaminska