A few months ago I rashly went on the record as saying that one of the benefits of the financial crisis was that in future investment banks would have much improved risk management functions. And I believed it.

Even now, looking back on it, it still makes sense. There was a clear disconnect not only between the rocket scientists on the trading desks who were taking on risk for their firms and the risk managers who were supposed to be supervising them, but in turn between risk management and the boards of some of the largest firms.