A whisper of wind
2 hours ago
Scottish politics and the road to independence, one plate of porage at a time.
“The Bank of England’s general approach [to regulation] was consistent with the attitude of FICC markets, which historically relied heavily on informal codes and understandings. That informality was well suited to an earlier age. But as markets innovated and grew, it proved wanting.Most troubling have been the numerous incidents of misconduct that exploited such informality, undercutting public trust and threatening systemic stability.This has had direct economic consequences. Mistrust between market participants has raised borrowing costs and reduced credit availability. Falling confidence in market resilience has meant companies have held back productive investments. And uncertainty has meant people have hesitated to move job or home. These effects are not trivial, and they have reduced the dynamism of our economy in the post-crisis years.Widespread mistrust has also had deeper, indirect costs. Markets are not ends in themselves, but powerful means for prosperity and security for all. As such they need to retain the consent of society – a social licence – to be allowed to operate, innovate and grow. Repeated episodes of misconduct have called that social licence into question.We have all been let down by these developments. And we all share responsibility for fixing them”.