Thursday 16 June 2011

REVOLTING PEOPLE AND BANKERS

As the government launches its White Paper on financial regulation, public sector unions announce that they are going on strike in protest about cuts.

Now, apart from the obvious - ie. In terms of real money, there are no cuts people, this government is spending more than any other government in history and will continue to do so right up to the 2015 election - one argument that will be in full display is that it is the rotten bankers' fault.

Far be it for me to defend such dreadful practices as sub-prime mortgages and packaged debts, but there is one thing that public have missed - the regulators.

Everytime something goes wrong in the UK, there is a rush of new laws that completely fail to correct what they were introduced for.

The police, councillors, regualtors, blame the law for an event.

However, it is the inaction of the regulations that is at fault, not the laws themselves. Regulators could have stopped the madness that infected the banking world if they had chosen to, but they did not.

Now, the government has formally placed in the draft bill the new system of regulators and their responsibilities. I hope it will do the trick but at the end of the day. the main risk factor that is with anyone of us, in any sphere of life, is us.

Afterall we, and in turn regulators, are only human - like bankers really.

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