Prem Sikka has greeted the new year with a cal for the reform of bank accounting on his Guardian blog. As he puts it:
Despite recurring scandals, under the weight of corporate power successive UK governments have shied away from effective reforms to the governance of large corporations. The mantra has been that executive directors, non-executive directors and external auditors can check corporate excesses.
The subprime crisis once again exposes the fiction of such claims. Without a thorough investigation of the way banks are governed, structure of company boards, effectiveness of regulators, rights of savers, methods of director remuneration, quality of financial information and silence of auditors, meaningful reforms cannot be introduced.
Yet none of this is on the government agenda.