FT Alphaville ¬ª BofE official calls City’s bluff.
A senior Bank of England official said that if some banks moved overseas in response to tougher UK regulation, “it might be a price worth paying” to protect vital financial system reform. The comments, by Andy Haldane, the Bank’s head of financial stability, in a BBC interview to be broadcast on Friday, will add to tensions between the authorities and the financial sector, which has already attacked the government’s new 50% bank bonus tax.
He's got it right.
It is a price worth paying.
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May I disagree? If we lose the people who have wrecked our financial and capital structures, and incidentally inflicted economic damage on so many sectors of our society, then we have everything to gain, so there is not a “price to pay”. One is that real profit might return to those parts of the economy who have their potential to function limited by the stripping of their finances. We might again have insurance companies willing to pay out on claims, and turn a real profit in their trade.
I agree with Demetrius on this one. If some banks move overseas and this allows vital financial system reform, it’s a “win-win” situation, not a “price worth paying”. If the top Oxbridge graduates now move into jobs in the real economy, rather than the heavily subsidised financial economy, we’re likely to see lasting benefit. Sending the most highly trained mathematicians and physicists into exotic derivatives and interest rate speculation has been a waste of a generation.