The Independent Commission on Banking can’t have it both ways. If cross-subsidy of different banking operations in times of trouble is a good thing, why is the Commission recommending ring-fencing?
It seems to me that these newspapers are really complaining that Nick Clegg hasn’t been hypocritical enough. He’s betrayed his privileged social class, which I suspect is the real crime in the eyes of these pseudo-meritocrats.
Gerald Kaufman is wrong. It doesn’t matter in the US, any more than in Britain, which candidate or party gets most votes nationwide.
These characters have long argued that mainstream parties like the Conservatives and Labour need to do more to pander to popular prejudices about immigration, arguing that the alternative is to see a rise in support for the BNP.
The banking crisis gave the UK economy a heart attack and this had a disastrous impact on the public finances.
Some of those in the local authority world who I have spoken to suspect a political agenda here, noting that some of the biggest council losers are Labour-controlled.
It is said that the American system of government is so good because it was designed by geniuses to be run by idiots. Turner risks creating a system of regulation that can only be run by geniuses like him.
So apart from failures by major universal banks in countries that account for almost 40 per cent of EU (plus Switzerland) GDP universal banking has proved itself entirely safe.
If you’d invested £100 in HSBC in 2006 you would have, roughly, a £90 return now. Barclays, on this timeframe, would have given you around £63. £100 in Lloyds would have given you a measly £25. And £100 in RBS would have given you a pathetic £12. Meanwhile, £100 invested in an FTSE all share tracker would have given you a positive return of about £105.
UBS and Credit Suisse will have to hold low-risk reserves equal to 10 per cent of their total risky assets, plus 9 per cent of their debt in convertible bonds (debt that converts to equity in crisis). This is considerably tougher than the Basel III capital requirements agreed last year by the world’s central banks and regulators, which only requires banks to hold 7 per cent of their risky assets in capital.
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