Lord Mandelson stated that "The rewards (for bankers) need to be linked to risks. The problem is when excessive rewards start driving excessive risk taking." An enterprise has no choice: it must take a risk in the course of the business operations. This is in a nature of the economy. However it must always be a calculated commercial risk. It can be never an "excessive risk". Taking "excessive risk" is a legal wrong and, if it caused any damage, it must be pursued under civil law to obtain compensation from "excessive risk takers". It must also be investigated under criminal law. As Lord Mandelson effectively admitted bankers were rewarded for "excessive risk taking" since he was referring to the current crisis not some hypothetical situation. Hence, according to Lord Mandelson, bankers committed fraud. As explained in the seminal article on this blog, "The largest heist in history" the mechanism of this "excessive risk taking", i.e. fraud, was turning the global banking system into a giant pyramid scheme.
It is very refreshing and encouraging that a very senior British government official, effectively the Deputy of the Prime Minister, admitted that the financial community committed fraud from which it benefited. He was very clear that "taking excessive risk" was a euphemism for committing fraud. The taxpayers have all the right now to demand that the government will draw the conclusions from the Lord Mandelson's words: pursue a huge number of financiers on the charges of fraud and confiscate their wealth in order to compensate the taxpayers for the result of this fraud.