Ben Bernanke doesn't get everythng right, but he is righter than most, and on the state of UK, yes UK, bank supervision he is spot on
"Over the past few years the government of Britain removed from the Bank of England most of its supervisory authorities. When the crisis hit - for example when the Northern Rock bank came under stress - the Bank of England was completely in the dark and unable to deal effectively with what turned out to be a destructive run and a major problem for the British economy.
So currently the trend in UK and elsewhere is quite the opposite of taking away those authorities - it is to give the central bank the authority and information it needs to know what's going on in the banking system... for financial stability maintenance I think it's very very important for the Fed to have that kind of information and insight into the banking system"
1 comment:
Like in the US where the ultra independent Fed gave money away to every institution that needed it without question via AIG?
Like the Fed that regulated Citigroup?
Good argument. Bernanke is totally discredited. this is another simplistic argument put across badly.
Post a Comment