Financial Regulatory Forum

UK coalition may yield more “sensible” financial reform — The Economist

By Reuters Staff
May 14, 2010

Britain’s new coalition government may come up with a better approach to financial reform than the Liberal-Democrats and Conservative  partners would do invididually, and any compromise “will go further and faster” than the ousted Labour government,  The Economist writes.

The magazine approvingly notes the first compromise, in which the Conservatives dropped the idea of abolishing the Financial Services Authority and instead agreed to retain the agency while making the Bank of England the protector of long-term financial stability.


In a similar manner, the Liberal Democrats’ aims of breaking up big banks have been tempered by plans to study the issue for a year.

A telling difference between the two, it said, is their approach to banking, where the Liberal Democrats look outside of London and emphasize customer ownwership, while the Conservatives are more tied to the City of London.  Until these gaps are bridged, it said “expect a tug-of-war between Hobbit-town and the City.”

Full article: http://www.economist.com/world/britain/displayStory.cfm?story_id=16113119

Post Your Comment

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
  •