FT why do you not care for who really pays for current bank regulation presents?

Sir, LEX writes “previous banking conflagrations show that in good times regional banks like to pile on leverage almost as much as big ones”, “Bank regulation: no presents yet”, November 6.

But of course! I can understand that comment being made by a small local paper but… by FT? Is it not self evident that the duty of any bank manager is to provide the highest risk adjusted returns for their shareholders (and for their own bonuses)?

And does he not achieve that by piling up on assets like those perceived as “absolutely safe”, and which regulators have blessed with ultra-low capital/equity requirements, meaning ultra-high leverages?

And talking about regulatory presents to banks… why Sir, is FT seemingly not at all concerned with who really pays for those presents?

The high risk adjusted returns on bank equity are directly paid for by those perceived as “risky” borrowers, by means of higher relative interest rates or much less access to bank credit and, in the final count, by the economy, and by the young who as a consequence will face unemployment. Is that too difficult for you to understand?

And don’t give us that b.s. of the taxpayer paying… what he needs to pay for are for the excessive bank exposures created to something ex ante perceived as “absolutely safe” and that ex post turns up to be very risky.