Britain’s coalition business secretary, Vince Cable, has accepted a recent independent
report into the banking crisis, and is eager to implement the long-discussed changes in the banking sector, one of which is separating retail banking from the investment side; the other is the forcing of banks to create and hold more capital, in the event of another crisis, thus limiting the need to use public funds for a bail out. These points will require substantial restructuring of the banking sector with an end date set for 2019 for full implementation.
In a lengthy missive written in The Guardian newspaper, Cable attacked the moaning City of London boys that Prime Minister, David Cameron, seems so eager to placate, “In the UK we need to put the whingeing of the City to one side and concentrate on delivering our core narrative, to achieve growth by rebalancing the UK economy: sectorally towards advanced manufacturing, creative industries, higher education and professional services – and therefore with less reliance on banking,” he said. Strong words, and ones echoed by many analysts – regulation and reform is needed, but reinvigoration of industry and reinvestment in fledgling businesses and a more ‘generative’ approach is essential in order for the UK, and Europe, to get out of the current crisis. These things must happen in tandem; multi-tasking (an obnoxious term, admittedly) has never seemed so critical, as now.
Cable wasn’t entirely anti-Cameron in his approach, though, instead attacking the recent squabbles between the big EU players, who’ve had the audacity to suggest that Britain be downgraded and have suggested a blanket financial transaction tax, calling it a ‘cynical raid’ on the UK’s money.
