Ireland acts on my advice

Posted on

The FT has reported:

Ireland is planning to introduce tough legislation to clamp down on crony capitalism and excess bank lending in the wake of the property bubble that has hammered its leading banks, Brian Lenihan, finance minister, told the Financial Times on Monday night.

The measures will include a ban on cross-directorships and on chief executives becoming chairmen, as well as the creation of a central bank commission to incorporate the regulation of banking, to replace the present autonomous regulator.

“There is a problem in all small countries with too many incestuous relationships,” Mr Lenihan said. “We have decided to establish a central bank commission which will have comprehensive regulatory as well as monitoring powers, and will have the power to direct restrictions on lending.”

It looks like he was listening to me on Primetime on RTE  on 24 February. I made exactly that point about incestuous relationships in a small country.

It is precisely why tax havens cannot regulate themselves.