By Tim Hardy
The Conservatives favour a light touch on financial regulation because they’re a soft touch for City money.
(via Infogram: Tory City Interests)
At the height of the Libor fixing scandal, the Conservatives were demanding more deregulation for their paymasters
[Labour] claims that this regulation is all necessary. They seem to believe that without it banks could steal our money… This shows ignorance of how a competitive market works. Our aim is to liberate the economy from the burden of unnecessary regulations.
You have to ask yourself what criminality the Tories are hoping to enable now with their persistent calls to remove “the burden of unnecessary regulations” along with inconvenient “red tape” like human rights.
The financial system has already failed at huge economic and social cost. It has been shown to be corrupt, incompetent, rapacious and economically destructive. The City’s claims to be an indispensable jobs and tax engine for the British economy are nonsense: the bailout costs of 2008-9 dwarfed the financial tax revenues of the boom years, which were below those of manufacturing even at their peak.
In fact, the banks are pumped up with state subsidies and liquidity that they are still failing to pass on in productive lending five years into the crisis. A crucial part of the explanation is the unmuzzled political and economic power of the City: its colonisation of Whitehall and public life, effective grip on its own regulation, revolving-door pull on politicians and civil servants, and purchase of political parties. Finance has usurped democracy.
The Conservatives are doing all they can to block an independent judicial inquiry into criminal behaviour at Barclays bank even in the light of increasing evidence that this systemic fraud was being carried out by other banks too, perhaps even with the collusion of the Bank of England and the Treasury.
There is no hope of a fair inquiry while the party in power is bankrolled by the banks. Please sign and share the demand that all party funding from the finance industry be returned following the regulatory failure at Barclays.