The Banker From Ipanema

I read and article in the Wall Street Journal today which suggested that a good solution to our on going irresponsible banking practices at every level would be the Brazilian approach.
In Brazil if a bank makes a bad loan the directors are personally responsible. Can you imagine how quickly this would tighten up our system. Banks would have to elect directors who knew what they were doing and pay attention to where the money was going before the fact rather than after the fact. Bankers pay would be based on performance which should be at a high rate but if they made mistakes,their compensation would be negatively affected. In order to make money they would have to lend money - prudently. Businesses would have to give banks all the information they needed to make a decision. Banks in essence would have to understand the business and act as the business' partner and make sound suggestions.
The best part of doing it this way would be that politicians would not be involved because the system would take care of itself.
The success of our economy will be to implement common sense approaches like this one for every sector. Government programs and intervention should only be based on need. We need a strong military. Indigent people need to have access to government funded health care. The areas where government programs and intervention are needed seem very apparent to everyone except politicians.