What started as the British government’s move to limit bank bonuses last week is now becoming a full-blown policy shift. The New York Times reports that “the far-reaching rules by the Financial Services Authority would put pressure on financial services firms to buy £110 billion, or $175 billion, in government bonds or other assets that would remain liquid during a financial crisis, thereby reducing the likelihood of bank failures.” The move could spook banks and investors alike, especially given the price tag of new compliance measures, which would cost the financial industry around $3.5 billion annually. While bankers are starting to voice their concerns over how new rules would affect the UK’s desirability as a financial destination, the Labour government believes their measures will actually help the industry by creating a trusting, highly liquid system. And they are simply implementing G-20 decisions from Pittsburgh.
While we have your attention...
An increasingly rare commodity, quality independent journalism costs money - though not nearly as much as its absence.
Every article, every day, is our contribution to Defending Truth in South Africa. If you would like to join us on this mission, you could do much worse than support Daily Maverick's quest by becoming a Maverick Insider.
Click here to become a Maverick Insider and get a closer look at the Truth.
Canola oil is named such as to remove the "rape" from its origin as rapeseed oil.