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View Diary: Britain's 21st Century Glass Steagall Act (31 comments)

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  •  Ring-Fencing Just One of the Recommendations (1+ / 0-)
    Recommended by:
    Notreadytobenice

    of the Independent Commission on Banking, theUS Financial Crisis Inquiry Commission (FCIC) of the UK.  
    Independent Commission on Banking
    Final Report Recommendations
    September 2011

    Sir John Vickers was the appoined head of the UK commission.

    On 16 June 2010, the Chancellor of the Exchequer announced the creation of the Independent Commission on Banking, chaired by Sir John Vickers. The Commission has been asked to consider structural and related non-structural reforms to the UK banking sector to promote financial stability and competition, and to make recommendations to the Government by the end of September 2011...

    The review and recommendations are lengthy, but the summary of the goals is worth remembering as we hear that the Wall Street TBTF crowd is balking at even the lesser requirements imposed by the international regulatory efforts.

    ...

    The recommendations in this report aim to create a more stable and competitive basis for UK banking in the longer term. That means much more than greater resilience against future financial crises and removing risks from banks to the public finances. It also means a banking system that is effective and efficient at providing the basic banking services of safeguarding retail deposits, operating secure payments systems, efficiently channelling savings to productive investments, and managing financial risk. To those ends there should be vigorous competition among banks to deliver the services required by well-informed customers.

    These goals for UK banking are wholly consistent with maintaining the UK’s strength as a pre-eminent centre for banking and finance, and are positive for the competitiveness of the UK economy. They also contribute to financial stability internationally, especially in Europe.

    The international reform agenda – notably the Basel process and European Union (EU) initiatives – is making important headway, but needs to be supported and enhanced by national measures. This is especially so given the position of the UK as an open economy with very large banks extensively engaged in global wholesale and investment banking alongside UK retail banking. Indeed part of the challenge for reform is to reconcile the UK’s position as an international financial centre with stable banking in the UK.

    ...

    Independent Commission on Banking

    Opening RemarksSir John Vickers

    Someone in a very expensive suit is at the front door and says he wants to foreclose on our democracy. Where should I tell him he can put his robosigning pen?

    by Into The Woods on Mon Sep 12, 2011 at 04:43:52 PM PDT

    •  Am I to conclude this is a done deal in UK? (2+ / 0-)
      Recommended by:
      fabucat, Into The Woods

      This has the support of Cameron (and Clegg) and it will soon be law?
      Wiki on Sir John Vickers includes:
      "...In June 2010, he became Chair of the UK's newly created Independent Commission on Banking (ICB).[1] The ICB's task is to consider structural and related non-structural reforms to the UK banking sector to promote financial stability and competition (in the aftermath of the banking crisis of 2008). The commission made its recommendations to the UK government in September 2011, recommending a number of important measures, namely the introduction of the ring fencing of retail from investment banking, keeping 17-20% of certain assets as "loss-absorbers", using Lloyds branch sale as opportunity to bring in competitor and the implementation of a new system to help customers switch current accounts. The reforms are to be implemented by 2019 at the latest at a cost to the banks of between £4bn-7bn..."
      http://en.wikipedia.org/...

      •  I would not assume that. (1+ / 0-)
        Recommended by:
        Notreadytobenice

        From the little I've heard, there will be struggles within the ruling coallition.  
        Also, we can assume the lobbying will be fierce, especially with the ongoing financial crisis in Europe.  

        Someone in a very expensive suit is at the front door and says he wants to foreclose on our democracy. Where should I tell him he can put his robosigning pen?

        by Into The Woods on Tue Sep 13, 2011 at 05:20:06 PM PDT

        [ Parent ]

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