The boss of Britain's largest bank has warned that forcing through draconian regulatory reforms on the financial sector - including a crackdown on bonuses - could cause 'a new credit crunch'. HSBC chairman Stephen Green said: 'There is once again a real danger that the cumulative impact of doctrinaire policy could have some perverse and unintended effects on the economy and for wider society.' If banks are forced to raise their capital ratios before the economic recovery has fully taken hold, the extra cost involved 'could easily withdraw credit from the economy and cause a new credit crunch,' he said on the sidelines of a Business Week conference. He said authorities should not go 'over the top' with risk averse measures. His comments come ahead of the Queen's Speech today, which will announce a Financial Services Bill designed to bring the banks into line and place restrictions on bonuses in the wake of the credit crisis. The head of Spanish bank Santander, owner of Abbey in the UK, echoed Green's concerns. Emilio Botin said that: 'Limiting or penalising the size of banks through greater regulatory capital requirements will not solve the problem. http://www.thisismoney.co.uk/markets/article.html?in_article_id=494246&in_page_id=3
What a joke! The banks are barely lending as it is and this jackass is "threatening" that banks will lend less!!! I may not have the right English here but, "Mr. Green go bugger yourself!" Green's real complaint is bonuses...the other shit about lending (that they are NOT doing) is just window dressing to hide the real complaint - no more big money for dumb asses who bring banks to failure. -gastropod