I was acquainted with John Vickers at the Bank of England where he had become chief economist in succession to the now disastrous Governor Mervyn King. (Ask Alastair Darling!) Like King, Vickers is a very clever man but his expertise is in competetion economics not banking. Like King he is not ,and never will be a banker and his report if implemented will be a disaster for UK bank customers, personal and commercial as well as deeply and permanently damaging the City of London.
Vickers report simply gold plates what is already happening through the BIS. As with UK civil servants gold plating EU regulations Vickers ensures the UK will end up worse of than its banking competitors.in the US, EU and Far East with a resulting huge loss of jobs in the City of London. Economists should not be involved in banking decisions. That was the unanimous view in the City by those who have to do the business. City economists are for PR like boy Dave.
The problem with economists is they have never had to run any operation at a profit. I remember talking to a multi-national city bank advised by a big name economist. I asked what input this economist had into their decisions. There were derisive hoots of laughter. None was the reply. When we have to take serious decisions we kick him out. Osborne should kick Vickers report into the long grass asap and await the BIS internationally agreed rules which the US investment bankers will have a huge and sensible part in formulating
There is nothing more sick making than watching the three main UK political parties uniting to give their whipping boy a good kicking. This is of course to divert public attenetion from their own incompetence and corruption. Its a bit like the old Bernard Manning joke about we should all love each other and get together to give a certain ethnic group a good kicking.
Loudest in demanding prompt action on Vickers are of course the LibDems. Strange they are so silent on demanding prompt action on the recommendations of the Boundary Review Commission something which is of course an integral part of their coaliion agreement with boy Dave. Lets defer this reorganisation until after the next election say the Lib Dems feeling for their seats. Sickening from a yellow party.
Its the student fee betrayal all over again with deja vu! It reminds me of one of my Dad's old jokes about Communism. A left wing mining trade union official was being interviwed on sharing wealth. It went a bit like this.
Q: So if you had two houses you would give one to me if I had none.?
Q So if you had two cars and I had none you would give one to me?
A Of course
Q So if you had two dogs and I had none you would give me one?
A. Well lets not be too hasty. I have two dogs!
That is exactly the Lib Dem position, generous with other peoples assets but stingy with their own. They are neither Liberal or Democratic and indeed have said they will use their unelected members of the House of Lords to block this clearly democratic proposal. They are all hypocrites of the worst sort.
The Tories shelter behind them whenever any anti- EU proposal comes up. We can't support it because of our yelow coaltion partners say the yellow Tories of whom there are many.
I will opine on the Eurozone problems soon. Its a slow motion car crash that gets worse with each passing day.