James Ashton: We need the option of letting a bank fail
It is just as well that Spain doesn't need a bailout. Even Mariano Rajoy, the Prime Minister, doesn't believe the eurozone could cope if its fourth-largest economy got into trouble.
As he sets about cutting back on public-sector spending this week, you have to wonder how high Europe's firewall needs to be to settle investors' nerves, and when the European Central Bank can take lenders off its life support system.
At the same time as the eurozone crisis drags along, will Britain's new defence systems be robust enough to insulate us from another crash?
The powers of the Bank of England's new Financial Policy Committee are still being haggled over in the aftermath of the second reading of the Financial Services Bill. The FPC, a new arm of the Bank of England being set up to police financial stability, is unlikely to win any popularity contests. But if it can introduce a few more circuit breakers into the system, then it should be welcomed. Without them last time, the woes of relatively small banks in the shape of Northern Rock and Lehman Brothers came close to pushing the global financial system over the edge.
As one third of the old tripartite regulatory system, the Bank was complicit in failing to spot the last bubble inflating. But if next time around the government of the day has a choice between bailing out a lender or letting them fail, that can be construed as progress. It is not having an option at all that cost the taxpayer so dear in 2008.
- 1 PlayStation and Xbox hacked by Lizard Squad
- 2 Katie Hopkins speaks out on childhood obesity: 'Parents of fat children should be prosecuted for child cruelty'
- 3 The Grace Dent Christmas Questionnaire
- 4 The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
- 5 Vagina canoe artist defends herself over ‘obscenity’ charges
PlayStation and Xbox hacked by Lizard Squad
Antonio Martin shooting: Black teenager may have tried to ambush patrolman, says police officer's lawyer
Boxing Day snowfall set to push even more bargain-hunters online for sales
Katie Hopkins speaks out on childhood obesity: 'Parents of fat children should be prosecuted for child cruelty'
The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Rozanne Duncan: Ukip expels councillor for 'jaw-dropping' comments made in BBC TV interview
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
BBC director Danny Cohen: Rising UK antisemitism makes me feel more uncomfortable than ever
Alex Salmond has 'broken his word to the Scottish people' says Scottish Lib Dem leader
iJobs Money & Business
Not specified: Selby Jennings: SVP Model Validation This top tiered investment...
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...
£43500 per annum + pension + holidays: The Jenrick Group: Night Shift Operatio...
£20000 - £25000 per annum + OTE £40,000 + Car + Pension: SThree: SThree are a ...