Friday, September 16, 2011

Raymond Plant on the current financial crisis

Words of wisdom once again from Lord Plant of Highfield from a recent speech in the House of Lords. The speech can be found here and he aptly notes:

"[. . .] We should be very wary of blaming the banking crisis on a failure of regulation. The bankers caused that mess and it is the bankers' responsibility, by and large. To say otherwise is like blaming the police for criminal behaviour. Obviously regulation has to be improved and the Financial Services Authority did not cover itself in glory, but then neither did the Bank of England. We would be extremely naive to think that a new regulatory system is going to cure all the problems. It has to be a new regulatory system, plus separation of the investment banking sector."

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