Britain's regulators should tone down their attacks on the banks, slow the introduction of new financial rules and clarify the future structure of the industry to encourage lending and stimulate growth, says John Gieve.
In some of his most upbeat comments since the crisis, Sir Mervyn King claimed “there is momentum behind the recovery that’s coming” and that “good progress” has been made towards a new, sustainable economy in the last few years.
“I think that during the course of 2013 we will see the recovery come into sight,” he said. “If you take away what happened in the North Sea oil production and in construction, the UK economy last year grew by 1.5pc.” Overall, the economy grew by 0.2pc in 2012, according to the latest official data, and is expected to grow 1.2pc this year.
By James Kwak
The tragicomic events of the past few months—the London Whale (what are we up to now, $6 billion), Barclays-Libor, HSBC laundering money have prompted renewed interest in better, stronger regulation of the financial sector. Not that it’s going to go anywhere: it’s an election year, the Republicans have a blocking majority in the House and a blocking minority in the Senate, and they are only going to gain Senate seats in November.
OTTAWA — Bank of Canada chief Mark Carney said he is unlikely to raise interest rates until economic growth surpasses 2% and inflation quickens, adding that personal debt levels and the housing market will also influence the timing of his next move.
The conditions for hiking rates are implied in the bank’s mandate to target 2% inflation, but Mr. Carney laid them out more bluntly than he has in the past in an interview with Global National Television that aired on Sunday.
Regulators have said European banks need to come up with additional capital. The amounts vary from 8 to 413 billion Euros.Anything less than 200 billion Euros (the IMF's proposed number) is preposterous. Given the rout in Italian bonds today and the gloomy outlook for Spain and Portugal, even 400 billion Euros is far too low.One Trillion Euros would not be surprising.