I hear the sound of a stable door being slammed shut and horses hooves gathering pace in the distance. Lord Turner has produced his masterplan for banking.
How sad that the PM argued a ‘light touch’ when many people were calling for less borrowing four or five years ago.
So, Lord Turner now says that the City was reckless and is arguing for the bulk of bonuses to be paid in shares, which can be clawed back if deals turn out to be loss making. He also says we should consider banning mortgages in excess of 100%. My grandmother could have told him that. And glory be he is calling for the hedge fund industry to be subject to much stricter oversight. I would go one further and place all regulatory control back in to the hands of the Bank of England and scrap the FSA. I would also limit the number of credit cards one person can hold and place a tighter hold on personal borrowing.
The truth is that the PM went easy on regulation because he knew it would help maintain his record of growth. In other words, this over-rated Chancellor took risks with the British economy to prove him self right. Thank god his record is being seen for what it is, but what a pity we have to pay so heavy a price for the view.