How The World Works #7856

April 11, 2011

The “Independent Commission on Banking” has reported. Quelle surprise:

Bruce Packard, analyst at Seymour Pierce, said: “Although there will be a lot of squealing in public, we expect the bank managements to be secretly quite pleased, because, subject to regulatory minimum standards, banks will still be allowed to transfer capital and liquidity from their UK retail banking activities to the markets and investment banking business.”

Compare this pragmatism with the “analysis” of a tribune of the people such as the BBC’s Robert Peston, who leads with the assertion that:

The Independent Banking Commission set up by the Treasury has come up with reform proposals for the banking industry in the UK that will anger and worry both the banks and the banks’ sternest critics.

The critics may well be more angered than the banks, truth be told.


One Response to “How The World Works #7856”

  1. watsonlow Says:

    I caught Ed Balls critiquing the banking reforms. He had three stern tests to apply, one of which was, to paraphrase, “Is Osborne working hard to convince other countries to do the same?” His approach was unutterably feeble as if he conceded that there is nothing that we can do to curb the power of the banks. The stern regulation route always stumbles at the hurdle of bank flight. If we are too nasty to them they will take their business away and we shall lose jobs and tax receipts. So our politicians of all flavours continue to be owned by big business.

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