LESSONS FORGOTTEN

To have ever allowed the banks to merge their high street and investment operations was a move of such rank stupidity, it beggars belief.  The lessons of the 1930’s conveniently forgotten, we have waved goodbye to Glass–Steagall.

As the profits rose (and the tax take rose), we increasingly pinned our country’s colours to the mast of Mammon, at the expense of everything else.  Successive governments dropped their trousers and bent over, diluting regulation over and over again, until it was no more than weak swill at the bottom of the glass.

 

Now we have to suffer righteous indignation and buck-passing.  Party politics and blame.  And best of all, we get to pay for it too.

So, why are we surprised at the behaviour of those who manipulated Libor?  Traders are treated like prize-fighters by their employers, existing in a rarefied bubble of cash with no connection to the outside world.   

They are selected by measures of aggression, testosterone and capacity to take risk.   Should they be held accountable?  Undoubtedly; they knew what they were doing and didn’t care.  Are they ultimately responsible?  I don’t think so.

Danny Boyle has missed a trick.  If he really wants the Olympic opening ceremony to reflect this country, he should transform the stadium into one big trading floor.  As people enter, they could have their pockets blatantly picked by arrogant yobs in sharp suits and braces, while fountains of Bollinger pour down a drain...

...I am sure the banks would sponsor it.