Myners: banks must start behaving like they have something to lose
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City minister Lord Myners has called on banks to learn the lessons of the economic crisis and “start behaving as if they have something to lose”.
Speaking at the Smith Institute in London last night, Myners argued that the markets should control the fortunes of the banks, not governments.
He said without a removal of the state “safety net”, there would be no recovery to the banking sector.
He said: “We are serious about removing the safety net that has allowed those with blind faith in market efficiency to ignore the consequences of their lack of discipline. Far too many bankers themselves have enjoyed massive awards during the crisis, even as their firms were rescued.”
Myners also said the British Government is working with the G20 and the International Monetary Fund to assess the feasibility of an international levy or fee on financial institutions: “This will make sure than any residual insurance that banks are perceived to enjoy even after living wills are implemented will not come for free,” he said.
Myners also commented on the forthcoming Financial Services Bill, which will address consumer financial education and the rollout of an industry-sponsored money guidance scheme.
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Readers' comments (2)
M J Winfield | 9 Mar 2010 10:36 am
It appears Lord Myners is both 'Gamekeeper and Poacher', for he as Minister had a hand in pre collapse banking activity, or does he think he was untouched by 'Fred the Shredd's Pension agreement'.
Public opinion appeared to brand him as such.
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Richard Splasher | 9 Mar 2010 4:05 pm
I think my mind flashes back to the 80s and the Kenny Everret television programme....his american general charachter....i would get all the care free high bonus bankers, round them up in a field and bomb the B******s. Ok not practicle but how about a one off 130% tax on their bonus, they would think twice about it then if it would coast them money , but could be used to pay back the bail out fund.....ok not practicle....but would get the support of the nation
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