Comments on: Basel II means a further tightening of the credit crunch http://www.johnredwoodsdiary.com/2008/01/01/basel-ii-means-a-further-tightening-of-the-credit-crunch/ Conservative Party Member of Parliament for Wokingham Fri, 21 Nov 2008 07:17:56 +0000 http://wordpress.org/?v=2.6.2 By: mikestallard http://www.johnredwoodsdiary.com/2008/01/01/basel-ii-means-a-further-tightening-of-the-credit-crunch/#comment-16205 mikestallard Wed, 02 Jan 2008 08:51:12 +0000 http://www.johnredwoodsdiary.com/2008/01/01/basel-ii-means-a-further-tightening-of-the-credit-crunch/#comment-16205 The FSA looks, from the outside, to be another thoughtless EU imposition. Is this so? The government, in all its forms, is, as you so rightly point out, the last organisation that ought to be controlling the Bank of England. It is far too slow, for one thing. As you also say, "political experts" are now fighting last year's scenario. Also, "experts" work in generalities, not specifics. What I am afraid of is that someone reliable, like Harriet Harman, will be made Governor of the Bank of England when the currrent Governor "retires". Reply: I don't think the FSA as such is a requirement of EU law, but clearly it is a requirement of EU law now that we have a a UK financial regulator or regulators who implement all the massive EU legislation on financial services. The FSA looks, from the outside, to be another thoughtless EU imposition. Is this so?
The government, in all its forms, is, as you so rightly point out, the last organisation that ought to be controlling the Bank of England. It is far too slow, for one thing. As you also say, “political experts” are now fighting last year’s scenario. Also, “experts” work in generalities, not specifics.
What I am afraid of is that someone reliable, like Harriet Harman, will be made Governor of the Bank of England when the currrent Governor “retires”.

Reply: I don’t think the FSA as such is a requirement of EU law, but clearly it is a requirement of EU law now that we have a a UK financial regulator or regulators who implement all the massive EU legislation on financial services.

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