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Liquid Goldfish

Osborne Tried To Nobble Banking Commission

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Has this been posted yet?

Very interesting from Naked Capitalism based on article from thisislondon

http://www.nakedcapitalism.com/2011/03/more-project-merlin-infighting-back-story-and-the-collision-to-come.html

The Tories have really made a difference :angry:

The Government offered to emasculate the Independent Commission on Banking as it tried to strike a deal on bank bonuses a few weeks ago.
…it backed off only when Sir John Vickers, chairman of the inquiry, and his entire committee, Clare Spottiswoode, Martin Taylor, Bill Winters and Martin Wolf threatened to resign.
in the red corner, we have the entire IBC, Bank of England Chairman Mervyn King (just try to imagine Bernanke saying this sort of thing), BoE Deputy Chairman Paul Tucker, BoE Director Andrew Haldane, and FSA Chairman Adair Turner all calling for radical moves in bank regulation. In the blue corner, we have George Osborne and some banks.

http://www.thisislondon.co.uk/markets/article-23927660-why-merlin-turned-out-a-damp-squib.do

The Government offered to emasculate the Independent Commission on Banking as it tried to strike a deal on bank bonuses a few weeks ago. I am told it backed off only when Sir John Vickers, chairman of the inquiry, and his entire committee, Clare Spottiswoode, Martin Taylor, Bill Winters and Martin Wolf threatened to resign.

The row emerged in the last few days of frenzied negotiations around Project Merlin early in the New Year. A key objective of Merlin from the perspective of the banks taking part was to normalise relations between them and the Government. Thus the impression created by both sides was that the main area of discussion was bonuses and lending to small businesses.

It has now emerged, however, that the chief reason the banks took part was to lift the threat that Vickers's commission would recommend a major restructuring of the banking industry which would have the potential fundamentally to alter how they do business and where they make their money.

The banks involved - Barclays, HSBC, Lloyds, RBS and Santander - were particularly anxious to avoid High Street banking being separated from investment banking, or a similar requirement which would force them to choose between acting as an agent for clients wishing to gain access to the markets or as a principal dealing on their own account in those markets.

The Merlin deal was finally announced in mid February and contained commitments to lend more the small businesses, to give more disclosure on the pay of the top bank employees and a degree of restraint on bonuses, but was generally considered to be a damp squib. Chancellor George Osborne sought to defuse such criticism by pre-announcing an increase in what was supposed to be a one-off levy on bank profits just before the deal was unveiled.

However, it now appears that the reason the deal achieved little was that the banks would not offer worthwhile concessions unless Vickers was reined in. Although Osborne was said to have been willing to do this - in return for the political capital he thought he would get from solving the bonus problem - he was forced to back off in the face of a collective threat from Vickers and his colleagues to quit.

That at least is the story now being whispered round Whitehall. No one will confirm it but like all good conspiracy theories it does have that uncomfortable ring of truth. One can just imagine all the parties involved behaving in just the way described.

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in the red corner, we have the entire IBC, Bank of England Chairman Mervyn King (just try to imagine Bernanke saying this sort of thing), BoE Deputy Chairman Paul Tucker, BoE Director Andrew Haldane, and FSA Chairman Adair Turner all calling for radical moves in bank regulation. In the blue corner, we have George Osborne and some banks.

Hmm. Penfold and chums against the commercial banks, the Rothchilds, and the scions of Eton.

This will be interesting depressing.

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  • 285 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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