Diamond: Let bad banks go bankrupt…

first_img BARCLAYS president Bob Diamond yesterday said no bank should ever again have to fall back on the taxpayer for a bailout, as he argued that the future stability of the banking system lies in the successful implementation of “living wills”.“Strong banks want strong regulation,” Diamond said, referring to the raft of regulatory changes currently battering the banking sector. “We certainly don’t want a repeat of the crisis and no bank should ever take taxpayer money.”Diamond reiterated Barclays’ firm opposition to politicians’ proposals to mitigate risk in the financial system by splitting up banks’ investment and retail operations, adding: “The key to managing systemic risk lies in resolution plans… Large banks like Barclays, HSBC and Standard Chartered have to compete against the likes of JP Morgan and Bank of America, Santander in Spain, Deutsche Bank in Germany and BNP Paribas in France – and we see no sign of authorities around the world moving to change the structure of those institutions.”Bank of England deputy governor Paul Tucker agreed, telling delegates at the CBI’s annual conference that the “bedrock of trust” for banks was for customers to understand both that their money is safe and that banks will be allowed to fail in the future in an “orderly fashion”.Diamond said he “applauded” the UK government for the tough decisions it has taken to bring the deficit under control and said he recognised banks’ “obligation” to support growth, but warned that placing an excessive tax burden on the sector could hamper its ability to lend to smaller businesses. On bank lending to small and medium-sized enterprises, which has come under the spotlight as smaller businesses struggle to gain access to finance, Diamond said banks are still lending but that they also have a duty to approve loans responsibly. by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailNoteabley25 Funny Notes Written By StrangersNoteableySerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesMagellan TimesThis Is Why The Roy Rogers Museum Has Been Closed For GoodMagellan TimesElite HeraldExperts Discover Girl Born From Two Different SpeciesElite HeraldDiscovery23+ Sports Stadiums Around the World That Are Abandoned NowDiscoveryZen HeraldThe Truth About Why ’40s Actor John Wayne Didn’t Serve In WWII Has Come To LightZen Herald whatsapp Monday 25 October 2010 8:31 pm Share More From Our Partners Native American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgMark Eaton, former NBA All-Star, dead at 64nypost.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgKamala Harris keeps list of reporters who don’t ‘understand’ her: reportnypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgcenter_img KCS-content Diamond: Let bad banks go bankrupt… whatsapp Show Comments ▼ Tags: NULLlast_img

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