MEP and vice-chair of the Economic and monetary affairs committee Arlene McCarthy has accused the financial sector of not learning the lessons of the crisis and “kicking back” at regulation.
Speaking at a Smith Institute fringe event at the Labour autumn conference in Manchester yesterday, McCarthy warned that the industry could face more regulation in the face of repeated scandals.
She said: “When we had the BSE crisis the food industry recognised we needed regulation. The problem with this industry for the large part is that it is still kicking back at regulation without coming forward with alternatives, better ways to do it or self-regulation.
“We had to deal with the 2008 financial crisis and then we had a Libor crisis four years later, so consumer groups and people tell me we need to regulate more because the industry is not learning the lessons from the crisis.”
McCarthy also defended EU regulation from industry criticism and called on the industry to support a finanical transaction tax.
She says: “Everything we are doing is G20 agenda, it is not an EU agenda. Every single thing we are doing is agreed intermnationally although other countries may be doing it in different ways.
“Why are you against everything? Why not say; let’s have a financial transaction tax based on the model of UK stamp duty.
“We do not have common taxation in Europe so we could keep the money. It is one of the reasons we do not make our case very well with the industry and why lots of our colleagues are fed up with us. They think the UK pleads a different agenda. So much so that prime minister David Cameron wielded a veto.”
McCarthy echoed the views of Labour leader Ed MIliband by warning the industry to “self-regulate or we will do it for you”.