Thursday, August 27, 2009

City is too big and socially useless, says Lord Turner - Telegraph

City is too big and socially useless, says Lord Turner - Telegraph: "'I think some of it is socially useless activity,' he said, referring to the complex financial instruments that have largely been blamed for triggering the biggest global financial crisis in decades."

Some would argue that the most socially useless activity was the responsibility of one major US institution at 1 Curzon Street.

If the regulator had been awake we would not have suffered so much harm in the UK and beyond. We don't need buck passing Mr Turner, we need action.

Video: FSA chairman Lord Turner says City too big - Times Online

Video: FSA chairman Lord Turner says City too big - Times Online: "Lord Turner of Ecchinswell, an influential figure in the reform of banking rules in London and beyond, said that the City had grown “beyond a socially reasonable size”, accounting for too much of national output and sucking in too many of Britain’s brightest graduates."

I agree with the bit about being socially useless but can't work out why the sucking in of Britain's brightest graduates is in any way connected with this uselessness.

The most socially useless element of the City is the regulator, two decades later and we are still in a pickle while the regulators pile on the pounds.

When the regulators start to think they can set taxes and do other things only the government is empowered to do we can only welcome the last breath of this overconfident and overpaid Leviathan.