My words?
No, of course not!
They're the words of Mervyn King in his October 2010 lecture “Banking: From Bagehot to Basel, and Back Again". Page 15 to be precise.
It's now clear RBS has failed on many counts.
Barclays has a failed corporate culture that has allowed corruption.
HSBC has failed even more spectacularly on that count.
And Lloyds has missold and failed to lend.
So, following he Governor's logic shouldn't they all be in the public sector, to prevent failure and to reduce risk?
Just a thought.
Hat tip: Ralph Musgrave
Thanks for reading this post.
You can share this post on social media of your choice by clicking these icons:
You can subscribe to this blog's daily email here.
And if you would like to support this blog you can, here:
I don’t think there should be private control of anything which can have such an adverse effect on national interests. I appreciate that publicly controlled industries have their flaws, but at least they’re accountable to the people.
I’ve been reading a lot of articles on banking reform, and came across your blog. I’d read an article by Seumas Milne last month, and it made a lot of sense – albeit to a layman.Milne said:
“Only if the largest banks are broken up, the part-nationalised outfits turned into genuine public investment banks, and new socially owned and regional banks encouraged can finance be made to work for society.”
Would you consider these suggestions feasible in a competitive commercial market like the banking sector?
Yes, they’re clearly feasible
There is, however, a lack of political will