Small investors are the big losers
Published Date: 20 October 2008
WHILST I detest Gordon Brown, I do not believe that the chaos in the UK banking system is any fault of his. No more is it (as some have suggested) a consequence of action taken many years ago by Margaret Thatcher.
Rather, it is the dead hand of the EU Commission in Brussels that bears the greatest measure of guilt through its ill-conceived Capital Adequacy Directives, introduced last year to regulate financial institutions.
It is those very regulations that so severely restricted banks' ability to lend and borrow to each other that finally forced some to declare themselves insolvent.
In the US, similar new rules have been quickly scrapped as a con-dition of their government bailout, but typically, the EU Commission is devoting more effort to concealing its role in this fiasco than actually doing something about it, and is being aided and abetted in this cover-up by politicians of all parties in Westminster.
John Wainwright, Dewsbury Road, Tingley, Wakefield
It is those very regulations that so severely restricted banks' ability to lend and borrow to each other that finally forced some to declare themselves insolvent.
In the US, similar new rules have been quickly scrapped as a con-dition of their government bailout, but typically, the EU Commission is devoting more effort to concealing its role in this fiasco than actually doing something about it, and is being aided and abetted in this cover-up by politicians of all parties in Westminster.
John Wainwright, Dewsbury Road, Tingley, Wakefield
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