Financial Crisis Inquiry Commission Report

The FCIC report published today is scathing in its attack on the US Government, US bankers, and regulators in its 545 page report published into events leading to the 2008 financial crash.

Much of its criticisms of lax regulation, greed and recklessness of the bankers, unsustainable lending in terms of mortgages, and unregulated derivatives apply also to the UK and further highlights the miss management of the economy under the last Labour UK Government.

The new UK Government Coalition set up a Banking Reform Commission to guide future policy. In their testimony the banks argue that the status quo should be preserved. Sir John Vickers, the Chair of the Commission, in his preliminary findings argues that one possible solution would be placing retail division into separate subsidiaries would be one way of safeguarding the tax payer in future.

I continue to think that we must have total separation of investment banking and retail banking if we are to avoid another situation where taxpayers are forced to bail out casino activity. As long as the link remains, financial speculators will be encouraged to take excessive risks knowing that the tax payer will offer a safety net. Removing the protection of a public bail out is the only way to rein in the activities of modern bankers.

I was delighted today to sign an EDM calling for northern rock to be re-mutualised. The damaging privatisation reforms of the Thatcher Government were one of the key reasons for the 2008 crash, and we need to re balance the banking model with a greater share for institutions who are not driven by the relentless quest for profits.

Man Trafod - Rhowch sylwad yma

Bydd eich ateb yn cael ei gymedroli, ac ni fydd yn ymaddangos yn syth. Medrwch baratoi eich testun mewn prosesydd geiriau cyn ei roi yn y bocs, ond ni fydd elfennau megis trwmder tecst a lliw yn ymddangos.