Letters to the editor - 27/06

Poor governance, banker bashing, best of Twitter

Poor governance

[Re: We should welcome the demise of the global bond bubble, Tuesday]

Many of those who predicted the bubble and crash were independent commentators or economists, not those with power and influence. The FSA was too close to the Treasury; the Bank of England – where the biggest failure lay – stuck blindly to its inflation remit. Those who failed are now the most fervent critics of the scapegoated commercial banks, to the detriment of the recovery. But banks were merely actors in a play. Those to blame for overall credit, debt levels, and poor growth avoid responsibility. This is governance failure on a large scale.

Peter Lloyd

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Banker bashing

[Re: Banging up bankers is the wrong punishment, yesterday]

It seems unlikely that the notion of jailing bankers is seriously intended to encourage prudence in the financial sector. Regulatory changes, such as liquidity and reserve requirements, target this goal. Rather, it is a political message – attempting to signal a “tough on bankers” sentiment to those unlikely to dig into the report’s details. In this sense, the failing of the policy is that it is a relatively trivial distraction, diverting attention away from the dialogue that needs to take place regarding the desirable structure of our banking system.

Tony Waldron

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BEST OF TWITTER

LibDems say increased capital spend is their big win at Spending Review. But there hasn’t been an increase.
@DuncanWeldon

Business groups in the UK have complained about one thing: government failure to deliver on infrastructure.
@ChukaUmunna

By 2016, George Osborne will have cut government fixed departmental spending by 21 per cent.
@GABaines

Osborne right to boast of employment performance of private sector during public sector job losses.
@AndrewLilico