Britain has announced that it is going to tighten its banking system to prevent a repeat of the collapse that we nearly saw in 2008.
Insiders told Fairway Associates that banks will now have tougher supervision and bonuses will be thoroughly inspected. There will also be harder sentences for any financial misconduct and irresponsibility.
Fairway Associates sees that as long as the regulations are sensible then its will be a good idea to monitor what goes on. The UK, US and most of Europe took on too much risk; even more worryingly is that many banks did not see the risk they were taking.
Many of the UK banks had to be part nationalized in the crisis; one bank was taken full control of by the UK government. The new measures are aimed to stopped the events of 2008 happen again, its important thought that the banks are still able to be creative and innovative. Fairway Associates sources are concerned that if the UK government are too strict on the City of London much of the wealth generated there will go elsewhere.
Fairway Associates explains that hard lessons where learned last year and that corporate greed needs to be kept in check. However it will be a tough act to get the right balance of wealth creation and regulation. If the UK can get this balance right then the City of London should continue to remain a major player in the worlds financial system.
