spinning the financial crisis October 30, 2011Posted by Bradley in : financial regulation , trackback
According to the Chairman of the London Stock Exchange, Chris Gibson-Smith, the occupy movement should not be focusing its critique on financial institutions but on the governments which didn’t regulate the financial institutions properly:
There are unintended consequences of free markets … It’s not capitalism that has been the problem, but irresponsible governments and politicians who have allowed the financial system to explode by permitting the build-up of ludicrous amounts of debt and leverage.
Why did these irresponsible governments allow this? Because financial institutions told them too much regulation would interfere with their ability to compete with institutions based in other jurisdictions. And this is still going on. See, for example, this week’s news that Cameron is determined to protect the City of London from harmful European regulation.