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Send in questions for city minister Paul Myners

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BRITAIN-MYNERS/

City Minister Paul Myners is among a handful of people with first-hand experience managing the financial crisis over the past year.

On Dec. 16, at 9 a.m. British time, Myners will deliver a speech at an exclusive Thomson Reuters event in London on a proposal the government says will strengthen the City’s role as a global investment banking hub. He will also announce a series of policy measures designed to enable an effective resolution for failing firms.

Join a debate with Myners at 8:30 a.m.

Myners was appointed Treasury financial services secretary in October 2008, and worked on the bank rescue package. Since then, Myners has played a leading role in the debate over bank bonuses.

What questions do you have for Paul Myners?

What do you think of the bank charges ruling?

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courtBanks have won a two-year court battle, dealing a major blow to hundreds of thousands of customers seeking to claim back billions of pounds of what they say are unfair overdraft charges.

The new Supreme Court found that the Office of Fair Trading cannot use customer protection rules to investigate whether the fees were levied unfairly.

Too big to fail? Guerrilla central banking and the last resort

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ukreuterscomDeciding it was safe to come clean because banks are now on a more even keel and the worst of the credit crisis is behind us, the Bank of England has told the nation that at the height of the turmoil it secretly lent Royal Bank of Scotland and HBOS a colossal £62 billion, which is more than the entire British defence budget.

Both banks faced the imminent closure of high street cash machines and the curtailment of normal banking operations across the country.

from The Great Debate UK:

When firms “Too Big to Fail” fall

Amid the turmoil of the 2008 financial crisis a myriad of events unfolded that the general public knew nothing about, writes New York Times reporter Andrew Ross Sorkin in a new book titled "Too Big to Fail."

Wall Street fell from the dizzying heights of good fortune to calamity in a matter of months. To a large degree it's still to early to tell whether financiers and politicians involved made the right choices.

from MacroScope:

“Normal” bank lending is no longer realistic

MacroScope is pleased to post the following from guest blogger James Carrick.  Carrick is economist at UK fund firm Legal & General Investment Management. He says here old patterns of lending are unlikely to return and that this means slow growth in developed countries.

"Despite £175 billion of quantitative easing, bank lending in the UK remains weak, threatening to restrain the economic recovery and equity market rally. 

Banks score own goal with bonus culture defence

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In the blink of an eye it look as if the City is “booming” again after Barclays and HSBC announced buoyant investment banking earnings on Monday.

Both banks were hit by a surge in bad debts as the recession took its toll on borrowers, but analysts said that resurgent debt and foreign exchange trading and market share grabbed from troubled rivals fuelled the largely positive results.

from MacroScope:

Show us the money

It says something about the current world that a new economic indicator is about to be unleashed by the Bank of England and it basically tells you whether banks have been doing what they are supposed to do -- lend.

The first Trends in Lending report is due out on April 21 at 0830 GMT. Always nice to have a new indicator, but this one may get a bit more attention than would have been the case a few years ago. It is designed to provide up-to-date information about bank lending to households and businesses.

Late payments send small businesses to the wall

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By clamping down on credit, Britain’s newly cautious banks are making collapse almost inevitable for many small to medium enterprise (SMEs) who need a financial cushion now, more than ever, as suppliers and customers struggle to pay bills as the economic downturn bites.

Small businesses in Britain, which employ over half of the private sector workforce and annually generate some 3 trillion pounds, typically depend on loans for working capital to tide them over during lean spells.

Can MV=PT solve credit crisis for BoE?

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Britain could begin a telling exercise in classical monetary theory on Thursday as the central bank gets set to test a newly minted policy of “quantitative easing”.

In an effort to pump more money into the financial system and encourage banks to get lending again, the Bank of England has been given the green light to basically create more money.

Playing the blame game

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President Barack Obama had barely settled into in the White House before he was happy to admit he had “screwed up” over one of his choices for a cabinet job after Tom Daschle withdraw his nomination as health secretary over an income tax controversy.

Even Britain’s leading bankers were moved to apologise to parliament last month over the sector’s indiscretions in the boom years.

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