'Blame the policymakers more than greedy bankers' Lord Turner also told an audience of grandees at the Mansion House that individual greed and error was less of a contributor to the banking crisis of 2008 than a wrong headed approach to the regulation of banks and the economy.So he is encouraged by the latest international agreement by central bankers and regulators, the so called Basel lll agreement, that will force banks to hold more capital as protection against future losses Replica Pretty Cartier Love Necklace In Yellow Gold.However, Lord Turner conceded that if he were designing a relatively safe and stable financial system from scratch, he would force banks to hold yet more capital.The perfect solution wasn't available, because Lord Turner and his colleagues on the Basel Committee on Banking Supervision were acutely aware that while banks are building up their reserves of capital, they tend to lend less (even if there is no evidence that banks lend less as and when they have accumulated the requested capital).The Basel Committee had to compromise on a lower target for capital ratios, Turner said, so as not to undermine the global economic recovery.That said, Lord Turner is determined that the very biggest banks (the notorious "too big to fail" banks) will become much less dependent on the implicit protection of taxpayers, by instituting new legal arrangements that would force the creditors of those giant banks to convert their loans into loss absorbing equity during a crisis in a process known as a bail in (as opposed to a bail out).That would add an extra layer of protection before banks came cap in hand to us, the taxpayers.But such new funding arrangements could be expensive for banks, because their creditors would demand extra interest for the additional risks they would be taking away from taxpayers.Comment number 1. At 21:54 21st Sep 2010, Anithalynus wrote: The problem was not the size of bonuses, no, but it was (and is) a symptom of it. The problem on both sides of the Atlantic is the overlarge financial service industry, which has grown massively in the last few decades. It seems now that rather than this being because of massively improved products and services it was simple rent seeking. We were (and still are) paying silly amounts of money for them to move money around for no great purpose, except so they can bill us for it. This led to the high bonuses as they rewarded themselves for what they portrayed as great performance performance which was shown by the crisis to be at times comically bad.The solution is to introduce or reintroduce rules separating (state backed) retail banking from the more speculative stuff. They can pay themselves whatever they want, but with speculators money not ours. If banks then become more like dull building societies I think no one will be sorry, except those bankers used to making excessive profits with money implicitly backed by taxpayers.Complain about this comment (Comment number 1)Comment number 2. At 21:59 21st Sep 2010, nametheguilty wrote: The big mistake made was not thinking there was a problem with house prices spiralling into the stratosphere.If milk or bread doubled or tripled in price, steps would be taken.But somehow the same thing happening to houses was seen as ok even in some deluded quarters as a good thing.Until we get politicians and regulators to see house price inflation as the most damaging inflation of all, there is no hope of avoiding a repeat performance some time in the future Best Good Replica Cartier Love Bracelet In Yellow Gold.Complain about this comment (Comment number 2)Comment number 3. At 21:59 21st Sep 2010, nautonier wrote: Does anyone really think our UK parliament is able to sort out this mess within a reasonable time frame?The analysis is fine except that it credits the policy makers with too much ability

imitation cartier love necklace, competence and intelligence.This will all take years to resolve as our UK politicians are dillatory and lethargic just as if the highlighted problems and issues will just fade away into their tax haven bank accounts and family trusts . meanwhile as for the UK economy.?Complain about this comment (Comment number 3)Comment number 4. At 22:08 21st Sep 2010, Jacques Cartier wrote: > UK has to "move beyond the demonisation of overpaid traders".He's right traders are overpaid. To move on, they have to go.Complain about this comment (Comment number 4)Comment number 5. At 22:09 21st Sep 2010, the tiger wrote: Is Clegg wrong?What is difficult to understand for majority of the people is why people who gamble deserve such high bonuses at all.Complain about this comment (Comment number 5)Comment number 6. At 22:11 21st Sep 2010, prudeboy wrote: So the bankers are blameless. After all some one has to do it. We should all be enthralled at how they perform their magic.