Friday, Jan 22, 2010
Myners conveniently forgets about globalism
The Telegraph: UK rejects Barack Obama's bank reforms
Myners, theCity minister, said he saw the President's proposals to break up the investment banks as solutions to "American issues" rather than "necessary actions" for the UK.
"President Obama came out with a solution to the idiosyncratic problems that he sees in the American banking system which is around investment banking in particular," he said. "It's worth remembering that proprietary trading, hedge funds, private equity, these were not at the heart of the difficulties that Northern Rock, or Royal Bank of Scotland or HBOS experienced."
Posted by devo @ 10:37 PM (1020 views) Add Comment
18 Comments
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1. devo said...
All the leeches will turn around mid-Atlantic.
2. icarus said...
And US investment banks' main bases are in NY and which other city (a) Paris (b) Frankfurt or (c) London. No prizes.
3. devo said...
that's what i said
4. paul said...
So let's get this straight - after promising tougher reforms and getting multilateral support for reining in bankers, the UK government has actually betrayed the UK taxpayer after fleecing them and distancing themselves from the US in the process?
"It's worth remembering that proprietary trading, hedge funds, private equity, these were not at the heart of the difficulties that Northern Rock, or Royal Bank of Scotland or HBOS experienced."
Oh lord. This government deserves to die a painful death.
5. icarus said...
3. Did you?
6. devo said...
Myners can see a bigger game here, where US banks escape the crackdown by moving parts of their operations, under a different guise, to London.
7. icarus said...
US investment banks have been using London for 'regulatory arbitrage' for a while. Like Guantanamo - a place abroad where you can do what you can't do at home. When Brown created the Financial Services Authority in 1997 he wanted it to operate according to 'principles' rather than rules. The main principle was that Wall Street investment banks in London (UK investment banks had been practically wiped out by US banks) could regulate themselves.
What's Myners going to do about OTC derivatives? - financial bombs that are manufactured and used at least as much in London as they are in NY
8. devo said...
7. icarus said... What's Myners going to do about OTC derivatives? - financial bombs that are manufactured and used at least as much in London as they are in NY
Give me one person who knows what they are going to do about OTC derivatives.
9. icarus said...
8. FDIC's suggestions include requiring that (1) standardised OTC derivatives clear through central counterparty systems and, where possible, trade on regulated exchanges with regulators providing settlement system supervision and oversight, (2) non-standardised ones to be reported and subject to documentation and confirmation of trades and netting and collateral, margin and close-out practices (3) aggregate data and trading volumes to be made public and (4) Individual counterparty trade and position data made available to regulators on a confidential basis.
10. devo said...
icarus
you're doing it again
don't beat yourself up about it - techie and 51ck do it too.
11. icarus said...
devo - you and crunchy should talk among yourselves.
12. devo said...
icarus
cheap shot
i'll spell it out if you don't understand me
13. cat and canary said...
the day that Obama´s speech broke, the biggest FTSE climber was british airways,
they fly to new york, LA, washington, you name it.
must catch one of their flights and go live in a democracy
14. Thelostdecade said...
paul - are you suggesting that Northern Rock and HBOS were investing in/running/sponsoring hedge funds? I thought it was reckless lending at a retail level and how they funded themselves that was the cause of their problems.
devo - please spell out for me why otc derivatives are such a time bomb
15. This comment has been removed as it was found to be in breach of our Blog Policies.
16. mander said...
The real danger here is that UK is not getting the gobal picture where the west is moving away from asset inflation as a way to get rich because China will destroy their industries in few years. Sadly we are still banging on about property and no one will even listen to us soon. UK needs to diversify away from property very quick and I hope Cameroon advisers will be able to see this.
17. clockslinger said...
Many of the old hands on this site know an awful lot about finance & economics...so I'll throw this out there. Whilst it comes as no surprise that Spotty Osbourne wouldn't want any return to the "crude" separation of retail and investment banking under the Glass Stegall act (you know, the one we had during the time when ,entirely by coincidence, nothing like this happened) as it may effects the unwarrented earnings of his Eaton chums at the banks, his analysis requires a bit of scrutiny doesn't it? I don't think we need to care what a bank does with "it's own money" because, as I understand fractional reserve banking, that is like me having a flutter with the cat food budget for the day (possibly less). It is when they start levering up, and using other funds they don't really have that things get messy. Am I missing something, or can I have Spottys job? No unkind replies, please.
18. thelostdecade said...
paul - are you suggesting that Northern Rock and HBOS were investing in/running/sponsoring hedge funds? I thought it was reckless lending at a retail level and how they funded themselves that were the causes of their problems.
devo - please spell out for me why otc derivatives are such a time bomb