The Great Debate UK
- Bob McDowall is research director, Europe, at TowerGroup, a research and advisory services firm focused exclusively on the global financial services industry. The opinions expressed are his own. -
The banking results being published this week are inseparable from the catastrophic financial events of the last two years. It is time to glance back to where we have been and determine where we are now.
Almost two years ago, the slow-burning fuse to a financial services bomb was lit with the run on Northern Rock. The UK Government and its financial regulatory agencies defused that bomb “minutes” before it could devastate the UK banking and financial system in October 2008.
Official records will not be available for public scrutiny for 30 years or more, but anecdotal evidence indicates that at least one bank was within days of literally running out of cash. It has also been speculated that moves were planned by some businesses to prevent the customers of ailing banks from withdrawing cash from joint and third-party ATMs, although this has been denied.
- Bob McDowall is a research director working in TowerGroup’s European headquarters in London. His research addresses the principle challenges and opportunities affecting the European banking, securities, and investment management markets. The opinions expressed are his own. -
The UK Treasury Select Committee met on Tuesday to discuss the ongoing ramifications of the global banking crisis. High on the agenda was the need for a global reserve currency. A global reserve currency is certainly required to replace the U.S. dollar. No currency can permanently maintain both a domestic and international role in a globally connected industry.