UK banking rules in biggest shake-up in more than 30 years
Discussion
UK banking rules in biggest shake-up in more than 30 years
https://www.bbc.co.uk/news/business-63905505
The government has announced what it describes as one of the biggest overhauls of financial regulation for more than three decades.
It says the package of more than 30 reforms will "cut red tape" and "turbocharge growth".
Rules that forced banks to legally separate retail banking from riskier investment operations will be reviewed.
Those were introduced after the 2008 financial crisis when some banks faced collapse.
The package of changes is being presented as an example of post-Brexit freedom to tailor regulation specifically to the needs and strengths of the UK economy.
However, critics say it risks forgetting the lessons of the financial crisis.
Between 2007 and 2009 the then Labour government spent £137bn of public money to bail out banks........continues
Here we go again. Beyond belief. What's that favourite saying of the government when something's gone wrong? " Lessons have been learnt".
https://www.bbc.co.uk/news/business-63905505
The government has announced what it describes as one of the biggest overhauls of financial regulation for more than three decades.
It says the package of more than 30 reforms will "cut red tape" and "turbocharge growth".
Rules that forced banks to legally separate retail banking from riskier investment operations will be reviewed.
Those were introduced after the 2008 financial crisis when some banks faced collapse.
The package of changes is being presented as an example of post-Brexit freedom to tailor regulation specifically to the needs and strengths of the UK economy.
However, critics say it risks forgetting the lessons of the financial crisis.
Between 2007 and 2009 the then Labour government spent £137bn of public money to bail out banks........continues
Here we go again. Beyond belief. What's that favourite saying of the government when something's gone wrong? " Lessons have been learnt".
Short term growth at the expense of long term stability. But then no government ever looks more than 5 years into the future, because they know it won't be their problem to sort out.
SMCR - on paper if not in execution - had teeth. Senior Managers always had it in the back of their minds, and we've seen most of our clients prioritise their risk / fincrime functions as a result. Watering it down under the auspices of "it takes a while for foreign nationals to get certified and it makes the UK less attractive" is nonsense. Because ultimately, those Senior Managers and their families don't want to live in Frankfurt or Paris, they want to live in London - so they jump through the hoops. Loosening the rules on ring-fencing is a bit of a moot point; given the billions the major players spent setting it up (e.g. sort code migrations / separate functions), nobody of note is going to undo it.
SMCR - on paper if not in execution - had teeth. Senior Managers always had it in the back of their minds, and we've seen most of our clients prioritise their risk / fincrime functions as a result. Watering it down under the auspices of "it takes a while for foreign nationals to get certified and it makes the UK less attractive" is nonsense. Because ultimately, those Senior Managers and their families don't want to live in Frankfurt or Paris, they want to live in London - so they jump through the hoops. Loosening the rules on ring-fencing is a bit of a moot point; given the billions the major players spent setting it up (e.g. sort code migrations / separate functions), nobody of note is going to undo it.
The Leaper said:
As I recall, I think it was the then Labour government in the 1990s that first "relaxed" the banking rules in place at the time that led, in part, to the events of 2008.
As has been said: Lessons are never learned by governments, whatever their colour.
R.
“Governments never learn. Only people learn.”As has been said: Lessons are never learned by governments, whatever their colour.
R.
― Milton Friedman
Dingu said:
Stupid. We haven’t really recovered from 2008 yet. Only just got to the point where savings have had any form of meaningful interest.
No one cares about your savings. Only how much money they can make/steal at your expense.Once you relaise that, everything else makes sense.
monkfish1 said:
Dingu said:
Stupid. We haven’t really recovered from 2008 yet. Only just got to the point where savings have had any form of meaningful interest.
No one cares about your savings. Only how much money they can make/steal at your expense.Once you relaise that, everything else makes sense.
Unless the US changes its banking regs, tinkering with domestic British stuff is going to make f
k all difference. No one is going to reverse the separation of their investment and retail arms. Streamlining the approval process for senior staff, allowing insurers to invest in a wider range of low risk assets, these are all good ideas, but they're marginal little improvements. They're not comparable to "the big bang" liberalisation of the 80s.
k all difference. No one is going to reverse the separation of their investment and retail arms. Streamlining the approval process for senior staff, allowing insurers to invest in a wider range of low risk assets, these are all good ideas, but they're marginal little improvements. They're not comparable to "the big bang" liberalisation of the 80s.Gassing Station | Finance | Top of Page | What's New | My Stuff