The banking mess (Thatchers Legacy 3)
I wonder why there is a need for an enquiry into the banking mess. Is it really that difficult to find out what went on? It is always the same, a group of people think they can get away with it, why should anyone break the code.
You work with a group of people, many become your mates and they are all in this together, The bosses are happy as long as the profits role in. Nobody will interfere even if their are rumours, your mates are trustworthy and we are all having good times. Bob Diamond et al are carrying home loads of loot so let us just get on with it.
It is very similar to the expenses scandal in Parliament, most of them were into it but no MP told the story, of the present Cabinet, Gove, Lansley, Maude were all implicated. Even Mr Cameron paid back some money he wrongly claimed, it was only £947 but if tgis was a benefit it would soon be stopped if not hauled up in court.
Is there a solution? Probably not a complete one, just because there is a law against murder does not mean that nobody murders anyone. More vigilance and far more banks, the growth of the size of banks combined with how few there are makes any problem much worse. The big bang helped to create a febrile atmosphere of mergers and bigger is better.
The argument that the tripartite regulation regime was the cause of the problem just does not hold serious water, to mix some metaphors. The reason for introducing the system was because the Bank of England had failed in its monitoring duties. Going back, Barings, BCCI and Johnson Matthey Bankers, (they collapsed in 1984), all whilst the Bank of England was in charge!
Why has no Labour politician argued that whilst some activities are the failure of regulation, there were very good reasons for splitting the regulatory functions into different bits after the failures of the bank. But in the end it was a mixture of hubris and cheating which caused the problems in the banking sector. It is like the police, sometimes thay can act to stop a crime but most crime is not the fault of the police.
n
You work with a group of people, many become your mates and they are all in this together, The bosses are happy as long as the profits role in. Nobody will interfere even if their are rumours, your mates are trustworthy and we are all having good times. Bob Diamond et al are carrying home loads of loot so let us just get on with it.
It is very similar to the expenses scandal in Parliament, most of them were into it but no MP told the story, of the present Cabinet, Gove, Lansley, Maude were all implicated. Even Mr Cameron paid back some money he wrongly claimed, it was only £947 but if tgis was a benefit it would soon be stopped if not hauled up in court.
Is there a solution? Probably not a complete one, just because there is a law against murder does not mean that nobody murders anyone. More vigilance and far more banks, the growth of the size of banks combined with how few there are makes any problem much worse. The big bang helped to create a febrile atmosphere of mergers and bigger is better.
The argument that the tripartite regulation regime was the cause of the problem just does not hold serious water, to mix some metaphors. The reason for introducing the system was because the Bank of England had failed in its monitoring duties. Going back, Barings, BCCI and Johnson Matthey Bankers, (they collapsed in 1984), all whilst the Bank of England was in charge!
Why has no Labour politician argued that whilst some activities are the failure of regulation, there were very good reasons for splitting the regulatory functions into different bits after the failures of the bank. But in the end it was a mixture of hubris and cheating which caused the problems in the banking sector. It is like the police, sometimes thay can act to stop a crime but most crime is not the fault of the police.
n
Labels: Banking
posted by Unknown at
7:41 PM
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