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 […]
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Banks: gaming the rules to generate illusory profits
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 […]
Read MoreSpeech 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 […]
Read MoreFinancial 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 […]
Read MoreFinancial 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 […]
Read MoreFinancial 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 […]
Read MoreThe 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 […]
Read MoreMP 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 […]
Read MoreNew 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 […]
Read MoreDetlev 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.
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