A crisis of confidence in the European project

Headshot of Peter Droussitis

Greece is in a mess primarily because successive Greek governments failed to take the tough measures necessary to modernise the country’s economy and institutions. If the country was not in the eurozone then it could have taken radical steps of its own to correct mistakes of the past just as the United Kingdom did following… Read More »

Editorial: On Course…for the Rocks

on course for rocks autumn statement 2014

The Chancellor declared in his Autumn Statement that Britain was on course for a budget surplus, growth and national recovery. Yet at the outset he had staked his credibility on removing the deficit within this Parliament. Not only has the government failed in this overarching goal, but the deficit is unlikely to be eliminated until… Read More »

Shadow Banking, the Elephant in the Room

david phillips labour economy

Recent developments in bank regulation have increased capital requirements for banks and so constrained lending, which shows up in small business struggling to secure finance. The regulations originate from the Basel Committee on Banking Supervision (BCBS) (Basel III – new measures to strengthen regulation, supervision and risk management) and the European Union Capital Requirements Directive… Read More »

Editorial: Towards a More Stable Global Financial System

david phillips global financial stability

Resolving Macro-Prudential Matters Without Taxpayer Subsidy And so the US Federal Reserve brings to an end its $3.7 trillion QE experiment which ostensibly was introduced to kick start the economy, though this programme combined with a zero interest rate policy (two “subsidies”) has also enabled misallocated capital to continue propping up zombie companies. We must… Read More »

UK Financial Sector Needs Better Not More Regulation

UK financial services regulation

Douglas Flint, Chairman HSBC along with a number of other senior bankers (FT 7th August) are said to be critical of the ways UK financial regulators are now operating. Other press articles have also give the impression that the UK Government’s financial services regulatory requirements applicable now and being consulted on for the future, are… Read More »

The Dawn of Virtuous Finance and the Public Good

david phillips global financial stability

EDITORIAL: Yet another major financial institution made the headlines recently with Lloyds Banking Group’s £218 million fine, paid to the UK Financial Conduct Authority (FCA) and various US financial regulators over its manipulation of LIBOR and the Special Liquidity Scheme, a rate used by the Bank of England. These follow similarly hefty fines by other… Read More »

Is it Time to Strip Banks of their Power to Create Money?

Ben Dyson Money Credit

Martin Wolf, the chief economics commentator at the Financial Times, has recently argued that we should “strip banks of their power to create money”. In his column, he refers to proposals in the book I co-authored, Modernising Money (see below). The book explains how the power to create money can be removed from the banks that caused the financial crisis and returned to a democratic, transparent and accountable body working in the public interest.

Global Rules v UK Public Interest: New Companies Commission Needed

companies commission fearnley

It is now recognised in the UK that International Financial Reporting Standards (IFRS) mandated by the EU along with the voluntary adoption by the Financial Reporting Council (FRC) of International Auditing Standards (ISAs) in 2005 contributed significantly to the financial crisis by allowing banks to overstate profits and asset values.

Mark Carney and the Bank of England: The Challenges Ahead

Educated at Harvard and Oxford University, having experienced a successful period of just over five years as governor at the bank of Canada, Mark Carney soon stepped into the role of governor at the Bank of England ready to take on the challenges facing UK. As governor of the Canadian central bank, Carney pledged to… Read More »