Diamond is not forever
Posted: 3 July 2012 in Uncategorized
Tags: banks, economists, United Kingdom
Barclays chief executive Bob Diamond’s decision to resign, under pressure from the Bank of England and the Financial Services Authority, may have given a brief respite to Chancellor George Osborne and Prime Minister David Cameron.
But the fact remains that the ConDem government continues to put off a full judicial inquiry into the banking industry.
And when will mainstream economists, on both sides of the Atlantic, give up the myth that the raison d’être of the banking industry is to allocate capital efficiently instead of, as we have seen, manipulating interest rates and misleading customers to increase the amount of surplus they can skim off the top?