Jeremy Warner: Bank needs true outsiders on financial stability
Thursday 11 June 2009
Outlook Nobody is going to disagree too much with the four directors appointed yesterday from the Court of the Bank of England to the newly created Financial Stability Committee. Roger Carr, Sir David Lees, Mark Tucker, and Harrison Young all no doubt make worthy guardians of banking stability.
But how much better it would have been had some true iconoclasts and outsiders been appointed to answer the Bank of England's failings in this department. Setting interest rates became the be all and end all of the Bank of England's purpose during the great moderation. Working in financial stability is said to have been like being banished to Siberia. In any case, the financial stability function might just as well have been there for all the notice anyone took of it.
As is now all too obvious, this was a big mistake. Even so, Mervyn King, the Governor, won the battle to make the FSC, the purpose of which is to beef up this function, an internal affair as a sub-committee of the Court. As I say, I'm not going to quarrel with any of the appointments made yesterday, but my fantasy FSC would include some of those who actually saw the banking crisis coming, such as Terry Smith of Tullett Prebon, the economist Nouriel Roubini, and Jon Moulton of Alchemy Partners. There is no point in having people who are part of the consensus to advice on financial stability. What's needed is those who are outside the club.
- 1 Rarest Beanie Baby bought for just £10 at car boot sale could be sold for £62,500 on eBay
- 2 Katie Hopkins and The Sun editor are reported to police for incitement to racial hatred following migrant boat column
- 3 Katie Hopkins has just written a piece so hateful that it might give Hitler pause – why was it published?
- 4 Australian student Tommy Connolly, 23, adopts his pregnant, homeless 17-year-old cousin to give her a chance at 'a better life'
- 5 Cancel Sky at your peril: man spends 96 minutes in chat but fails to get rid of service
Rarest Beanie Baby bought for just £10 at car boot sale could be sold for £62,500 on eBay
Katie Hopkins and The Sun editor are reported to police for incitement to racial hatred following migrant boat column
'Jihadi John': Isis executioner Mohammed Emwazi wanted to wage jihad in Somalia until his friends were betrayed and killed by al-Shabaab
Parma, Missouri: 80 per cent of town's police quit after first black mayor is elected
Australian student Tommy Connolly, 23, adopts his pregnant, homeless 17-year-old cousin to give her a chance at 'a better life'
If I’m being racially abused I don’t need a stranger with a saviour complex to rescue me
The only black face in the Ukip manifesto is on the page about overseas aid
Ukip is the only main political party to not address LGBT rights in its manifesto
Food banks: One million Britons will soon be using them, according to Trussell Trust
Religion isn't growing, it is becoming vigorous in its demise, says philosopher AC Grayling
BBC election debate: The one photo that summed up the whole 90-minute leaders debate
iJobs Money & Business
£30 - 35k (DOE): Guru Careers: We are seeking a Pricing Analyst with experienc...
£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...
£21000 - £24000 per annum: Ashdown Group: The Ashdown Group has been engaged b...
£45000 - £50000 per annum + benefits : Ashdown Group: A highly successful, int...