Home » Posts tagged "Financial Crisis" (Page 2)

Tag Archives: Financial Crisis

What kind of government? Looking forward to the budget


Post Image

Via the TaxPayers’ Alliance, this video explains vividly that the Government is spending £22,218 every second. In this week’s MoneyWeek, Merryn Somerset Webb’s editorial is titled “Slash spending and taxes”. She refers to Dr Tim Morgan’s work which explains that the economy has for too long been dependent on private borrowing and public spending and that, now these are “dead in the water”, 70% of the economy is incapable of growth. I have previously explained that this Government will be […]

Tags: , , , , , , , , ,

Banks: gaming the rules to generate illusory profits


Post Image

As I prepared an article on how banks generate illusory profits and artificial levels of capital by gaming the rules, I rediscovered this limerick in Gordon Kerr’s related paper, The Law of Opposites: There was a young man from Darjeeling Who got on a bus marked “To Ealing” The sign on the door Said “Don’t spit on the Floor” So he lay back and spat on the ceiling Here’s a great metaphor from the book, which explains how the rules […]

Tags: , , , ,

Speech on the Financial Institutions (Reform) Bill


I was delighted today that my ten-minute rule Bill was introduced without opposition. This late in the Parliament, the Bill itself is extremely unlikely to make further progress but I was glad to put the following on the record (these are my notes – Hansard is here: Mr Speaker, I beg to move that leave be given to bring in a Bill to enforce strict liability on directors of financial institutions; to require directors of financial institutions to post personal […]

Tags: , , , , , ,

Financial Institutions (Reform) Bill – Other measures


In previous articles, I set out why it’s necessary to address risk-taking incentives in banks and how losses would be covered from the bonus pool and director’s personal bonds before hitting equity. This article sets out other necessary provisions. 5. Accounting standards 5.1 For the purposes of the Bill, all relevant figures (measures of profit, loss, capital, bonuses, personal bonds posted, etc.) would be obtained using parallel prudent accounting rules i.e. UK GAAP under Companies Act legislation. This was proposed in […]

Tags: , , , , , ,

Financial Institutions (Reform) Bill – Use of personal bonds and bonus pool to make good bank losses


Yesterday, I began to set out how my proposed Financial Institutions (Reform) Bill would meet the need for a vibrant, reliable and robust banking system by adjusting bank directors’ and employees’ exposure to commercial risk. That article described changes to bank directors’ liability and the treatment of bonuses. This article explains how losses would be made good and defines core capital. 3. Use of personal bonds and bonus pool to make good bank losses 3.1 Should a bank report losses […]

Tags: , , , , , ,

Financial Institutions (Reform) Bill – Liability of bankers and treatment of bonuses


A developed society like ours needs a good means of exchange, unit of account and store of value: a good money. It also needs a vibrant, dynamic, reliable and robust means of executing payments and intermediating savings to entrepreneurs: we need a good banking system. Unfortunately, Of all the many ways of organising banking, the worst is the one we have today. And I agree with the Governor of the Bank of England. He said elsewhere in that speech, “At the […]

Tags: , , , , , ,

The BoE’s Andrew Haldane: “The best proposals for [bank] reform are those which aim to reshape risk-taking incentives on a durable basis”


While preparing to seek permission to introduce my Financial Institutions (Reform) Bill, I discovered a recent article by the Bank of England’s Executive Director for Financial Stability, Andrew Haldane, The Doom Loop: Equity in Banking: The continuing backlash against banking, as evidenced in popular protests on Wall Street and in the City of London, is a response not just to the fact that the world is poorer, as pre-crisis riches have turned to rags, but to the way these riches were privatised, […]

Tags: , , , , , ,

MP bids to hold directors to account for losses | News | Money Marketing


Via MP bids to hold directors to account for losses | News | Money Marketing: All-party Parliamentary group on economics, money and banking chair Steve Baker wants directors of financial institutions to be forced to take personal liability for their firms’ losses. In a private member’s bill to be debated later this month, Conservative MP Baker calls for any losses to be “made good” first by directors’ bonuses which should be held back for five years, and then by personal bonds […]

Tags: , , , ,

New 10-minute rule bill: The Financial Institutions (Reform) Bill


Next wednesday, after PMQs, I’ll be seeking leave to introduce a Bill to make bank directors and the recipients of bonuses liable for bank losses, amongst other measures. Via Parliament’s future business: FINANCIAL INSTITUTIONS (REFORM) Steve Baker That leave be given to bring in a Bill to enforce strict liability on directors of financial institutions; to require directors of financial institutions to post personal bonds as additional bank capital; to require personal bonds and bonuses to be treated as additional […]

Tags: , , , ,

Detlev Schlichter argues we’ll be rethinking the role of the state as the crisis deepens


In this video, Detlev Schlichter talks to Jan Skoyles of the Real Asset Company about the crisis, the benefits of cooperation and money as a key causal factor. He argues we will need to fundamentally reconsider the role of the state, as the crisis continues to develop.

Tags: , , , ,

← Older posts Newer posts →