Should there be a commercial bank owned by the government in the longer term?
As the UK government continues to hold significant stakes in the likes of Lloyds TSB and Royal Bank of Scotland there is a growing debate as to whether the UK authorities should operate a majority controlled bank in the UK commercial sector. The ability to potentially lead from the front has attracted the attention of many MPs and regulators although there are a number of issues such as conflicts of interest which would need to be addressed in the short, medium and longer term.
In many ways the UK government and the UK regulators have been caught short because of their limited insider knowledge of the UK banking sector. They appeared unaware of the significant increase in risks over the last few years, as profits were chased, and they were ill-prepared for the eventual credit crunch and economic downturn. While the Bank of England is effectively the centre of the UK banking system there is a growing feeling that the bank is short on commercial experience on the ground floor.
Whether this would make a significant difference in the longer term remains to be seen but the UK government and the UK regulators were left wholly exposed when the downturn finally came and action was required.
Share this..
Related stories
UK budget back in the black
The public sector purse showed a surplus in April as a growth in value-added tax (VAT) payments helped shift the UK's finances back into the black during the first month of the new fiscal year.Figures released by the Office for National Statistics (ONS) showed a surplus of £0.2 billion on the current budget, compared to a deficit of £0.9 billion in April 2006.Meanwhile public sector net borrowin...
Read MoreUK stock market reports largest ever quarterly rise
The UK stock market rose by an impressive 21% between July and September 2009, a record single quarter return since the creation of the FTSE 100 index back in 1994. While the market was down slightly today, the fact that investors appear so adamant that the UK recession is nearing an end would appear to be at odds with some analysts who are not convinced that the UK recession will end as quickly a...
Read MoreLondon market higher on bid hopes
The last few days have been very volatile for the UK stock market, and indeed worldwide stock markets, but this morning the UK market is up around 1.4% on renewed bid and merger activity. There is no doubt that over the last few weeks we have seen a significant increase in corporate activity within many overseas predators hovering over a number of UK companies. The relatively low exchange rate...
Read MoreWhy you should shop online for your energy needs
A survey by the Daily Express has confirmed that shopping online for your gas, electric and other energy requirements is far cheaper with savings of around 12% now commonplace compared to the off-line arena. Even though the energy regulator should really be ensuring that those without Internet connectivity are not "left out of the loop" it would appear that the online arena is far more competitive...
Read MoreNew ID cards don't mention Britain
When Jacqui Smith stepped forward to launch the UK's first official ID card you might have been mistaken for thinking that she had picked up the wrong card. There is no mention of Britain, no evidence of a Union flag and to be honest you would not have a clue which country it related to without the press release which was attached. It seems that we will have to pay for the privilege of advertisi...
Read More