This is off the heals of the Basel Committee looking at 3.5% fee to curb bank growth
Does anyone else find it weird that in one day there are two stories about getting tougher on big banks? Or am I reading way too much into this, which is probably what is happening. Anyway I just find it odd.
I think the return of Glass-Steagall is a good idea. I fear it is too late. The derivative trade is the bomb that will blow up the world. CDS's, and securitization lead to the mortgage mess ( along with government intervention ). My fear is that these steps are too late to be effective for the UK, and the rest of the world. As with most politics, nothing happens until someone's back is against the wall. And, that is what you are seeing now.
davefess, it's just so that they can help get to QEIII that much quicker. Europe will benefit too.
Though, I do wonder if they will bring back Glass/Steagall here in the US. I guess I will believe it all when they get back to mark to market accounting rules. LOL. A guy can hope, right?
The political dynamic in the UK is that there are three main parties: the Conservatives (right), Labour (left) and the minority Liberal Democrats.
The Conservatives failed to get a clear majority in last year's General Election and had to go into coalition with the Liberal Democrats. Which is weird, not only because the UK hasn't had a coalition government since WW2. But principally because the Liberal Democrats in some sense are further left than Labour. The Lib-Dems are a motley crew of particularly disaffected agitators, and it will have been their influence that has pushed the Tories (Conservatives) to go so hard on the banks.
I would love to see Glass-Steagall back if we aren't going to let banks fail. Maybe passing this in UK would send a message to US?