Vince Cable urges "tough love" on regulation

July 26, 2009 7:40 PM

Brentwood & Ongar's Parliamentary Spokesman Cllr David Kendall has welcomed Vince Cable's recent speech outlining reforms of UK banking regulation.

With many local residents working up in the city they are looking for clear direction from the political establishment on ways in which the current regulatory model can be improved. Once again Vince Cable is leading the way on this area that is crying out for change. He called for:

  • RBS and Lloyds to be broken up before they are returned to private ownership.
  • Highly paid bankers to publish details of their remuneration and confirm they are resident and domiciled in the UK.
  • The FSA to remain as a unitary regulator.
  • A long term role for state banking, rather than the quick sale of state owned banks.
  • The scrapping of the "woefully misconceived" Asset protection scheme.

Vince said "Some aspects of the financial services industry are just to big for the British economy to manage safely. The large, failed British banks are the financial equivalent of Chernobyl. Like the Soviet Union the UK became over reliant on dangerous financial reactors"

"Britain has the highest share of banking assets in GDP of any major country, four times as high as the US. To prevent Britain becoming the next Iceland, radical safety measures like the ones I have set out are required".