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Weak foundations

30 April 2009 / Tim Lawson-Cruttenden
Issue: 7367 / Categories: Opinion , Public , Tax , Banking
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The banking system has been built on sand for too long, says Tim Lawson-Cruttenden

The G20 conference heralded a new “Dunkirk spirit” in the UK. Only perhaps the British can claim that a massive defeat is a victory. The casualty list is long and includes Northern Rock, Credit Lyonnais, Bear Stearns, Lehman Brothers, AIG Corp, Bradford & Bingley, and Dunfermline. Throw in Iceland and Bernie “Made-Off ” and we have some idea of the international scale of this disaster.

We are told that reinforcements in the form of $1.1trn will turn our Dunkirk into a D-Day victory—we even saw President Obama gesticulating “V for Victory” with the reversed middle fingers of his right hand.

Running parallel is, of course, Lord Turner’s review of the banking crisis and his anticipated thesis that the answer is centralisation and regulation of the banking system. The cry is apparently greater liquidity and increased capitalisation. In the interim low interest rates and renewed borrowing thus fuelling “dependency”. However, none of this seems to deal with the fundamental flaws

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MOVERS & SHAKERS

CBI South-East Council—Mike Wilson

CBI South-East Council—Mike Wilson

Blake Morgan managing partner appointed chair of CBI South-East Council

Birketts—Phillippa O’Neill

Birketts—Phillippa O’Neill

Commercial dispute resolution team welcomes partner in Cambridge

Charles Russell Speechlys—Matthew Griffin

Charles Russell Speechlys—Matthew Griffin

Firm strengthens international funds capability with senior hire

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