Financial Services Authority boss Lord Turner released his 122 page review today but just how much will be implemented and will it stop a financial meltdown happening again?
The ideas are part of a radical package of proposals set out by the FSA supremo to prevent a repeat of the current credit crunch. Quoting Lord Turner from a Sun article: “We need to make the banking system a shock absorber in the economy — not a shock amplifier.”
Other proposals include: forcing the banks to hold more cash in reserve, the introduction of a European-wide regulatory regime, changing bonus structures and cutting out the jargon from complex investment products. The latter particularly irked the peer referring to them as “alphabet soup”.
He told Sun City: “If we had this regime in place ten years ago around the world we would not have the problems we are now seeing. This regime would prevent the credit crunch from happening again.”
All good news we think in the 24/7 Moneybox office however, as with all regulation it’s a very fine balancing act. Too much red tape will strangle our fragile economy and could actually make the recession last longer. Lord Turner’s proposals also highlight the needed for responsible lending something we take very seriously indeed. When you apply for our short term loans we want you to be sure you have thought ahead and can afford the repayment. Check out our lending guide if you need some assistance.
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