Archives for posts with tag: labour

Well it’s been a long time since I wrote a blog but frankly it’s 12:15 in the evening, I’ve been ill in bed for 3 days and I’m totally bored.  Anyway a few minutes ago I stumbled onto this… http://www.youtube.com/watch?v=oamGnLC6FYY&feature=youtu.be

Ed Miliband’s new wheeze about banking reforms.  Personally I’m not immune at all to the argument that banking needs reform, it absolutely does.  Not only that but most of my clients (CEO’s and Chairman of banks!) can see there’s a need for reform.  Ed is talking about needing new banks and he’s absolutely right, we do.  Not only do politicians and people see it but so do the City, I won’t go into details but there are lots of people I know trying to make this a reality, market pressures will force it to happen.  Where I start to disagree with Ed is how this should happen.

Frankly the last time a politician has been let loose with a bank it was the Reverend Flowers (also Labour) and look where that got us.  I’m sorry but senior politicians of all hues are simply not up to the task of banking reform.  Firstly they’re all as I’ve said before PPE graduate career politicians with no real world experience whatsoever, I wouldn’t trust half of them to run a raffle let alone a major business or reform of the countries largest industry.  Yes of course the bankers have made a shambles of this but that doesn’t mean you throw the baby out with the bathwater.  Banking and financial services in general make up a HUGE proportion of our economy, if you meddle too much then you risk killing the golden goose.  To all the naysayers who will of course pipe up and say well we don’t need all those rich bankers etc please also spare a thought for the millions of others employed either directly or because of the financial services industry in this country.  I don’t think the cashiers at your local Barclays are your enemy.  Financial services is global, if you change the rules to make things too harsh it’s all too easy for them to relocate elsewhere and frankly with loose regulation and lower taxes elsewhere why wouldn’t you?  

The reform has to be done cautiously, by people who understand the banking world and have no axe to grind.  There are plenty of senior bankers out there who are not looking to profit from the sector anymore but have huge knowledge of global financial markets that we can tap to make judicious reform without cutting our nose off to spite our face.  Sir Win Bischoff for instance would make a great elder statesman to do this (yes I’m aware he is now chairing the FRC)

We have great expertise in this country, it’s a sector we excel in, let’s use that knowledge and tap into it.  Let’s not seek revenge for the catastrophe of the past that can only end in future hurt, let’s make sure we build a sustainable model for the future and in doing so retain the City’s position as the biggest financial services centre on the planet. 

 

(Also as an aside, I’m not sure promoting easy credit, whether to businesses or to people is the best idea, it is what got us into this mess in the first place!  Yes start ups need funds but often that’s better left to private equity than banks, they’re gambling with their own capital and can take greater risks.  I’m rather pleased the banks are being risk averse for a change! Although I’m sure in the next breath Ed can still mention casino banking…)

The below is a conversation I had with a Labour MP on Twitter earlier in the evening.  A question or two at the end in the unlikely event anyone actually reads my blog!

 

Haralambos Dayantis ‏@HCDayantis

@KarlTurnerMP I find his Osbornesque objections to borrowing highly troubling, ignoring years of macroeconomic research…

 Retweeted by Karl Turner MP

 

Chris Grove ‏@ActuarialChris

@HCDayantis @KarlTurnerMP Does that RT mean that Labour are now suggesting borrowing more Karl? I don’t recall seeing that on 5 pt plan…

 

Karl Turner MP ‏@KarlTurnerMP

@ActuarialChris @hcdayantis borrow less if implement plan to stimulate growth. When is penny going to drop for you that #Osbornewrong?

 

Chris Grove ‏@ActuarialChris

@KarlTurnerMP @HCDayantis that wasn’t my question, to my knowledge Labour aren’t suggesting borrowing anymore than the Tories are?

 

Chris Grove ‏@ActuarialChris

@KarlTurnerMP @HCDayantis Last I heard growth plan was to come from taxing bankers bonuses, or has this changed now?

 

Karl Turner MP ‏@KarlTurnerMP

@ActuarialChris amongst other things. Need stimulate the economy. Replace #Osborne with bag spuds economy will do better.

 

Chris Grove ‏@ActuarialChris

@KarlTurnerMP @ActuarialChris So is that a yes you plan to borrow more or a no you don’t? Also does this mean you feel q4 figs will be poor?

 

Karl Turner MP ‏@KarlTurnerMP

@ActuarialChris #OBR predicting triple dip but let’s hope for the best.

 

37mChris Grove ‏@ActuarialChris

@KarlTurnerMP @hcdayantisThat didn’t answer the question of will Labour borrow more?

 

Chris Grove ‏@ActuarialChris

@KarlTurnerMP Also negative growth in Q4 doesn’t make a triple dip recession…

 View conversation 

 

Karl Turner MP ‏@KarlTurnerMP

@Guy_Fawkes2010 @hcdayantis @actuarialchris deficit up, borrowing up, growth down. Lots #foodbanks opening though!#ToryFail

 

Chris Grove ‏@ActuarialChris

@KarlTurnerMP @Guy_Fawkes2010 @HCDayantis umm growth is currently up….

 

Karl Turner MP ‏@KarlTurnerMP

@ActuarialChris keep voting #Tory Chris. They need all support they can get.

 

Karl Turner MP ‏@KarlTurnerMP

@ActuarialChris growth was at 0.7% in May 2010. Now less. Flatlined. Double dip. Then flatlined. You really are bit simple Chris.

 

@KarlTurnerMP I didn’t say I voted Tory, as a general rule I am economically right wing but generally I think you’re all pretty poor tbh.

 

Chris Grove ‏@ActuarialChris

@KarlTurnerMP Also I see you still didn’t answer the question.. It’s a simple one to answer and I think most voters would quite like to know

 

@ActuarialChris who do you think Uou are #Paxman? NO. If stimulate economy it will grow. Borrowing falls as result. Simple really.

 

 

35mChris Grove ‏@ActuarialChris

@KarlTurnerMP No I think I’m asking a simple question which you’re clearly evading, is it Labour’s plan to increase borrowing

 

@KarlTurnerMP However I would point out Ive been entirely polite asking this question, for an MP to resort to personal attacks is rather sad

 View conversation 

 

 

Is it just me or are MP’s of all hues very keen to avoid questions?  Also since when did MP’s become quite so combative and frankly rude, or am I being over sensitive, or was I rude?  I’m open to being told I was the one at fault, it has been a long day after all!