Our comments on The Times' Aimee Donnellan and Dominic O’Connell's, recently published article:
“The chancellor may have to drop his tough line over banks to stop HSBC quitting the UK”
For all the bad behaviour of the banks, it seems obvious to some of us that over a period of time the financial markets are inevitably going to move to where the new and expanding money is, which is Asia.
HSBC were always going to be the first off the rank of the British banks to do so and the extent to which Osborne’s tough line brought that forward we will never know.
It does indicate that the Financial Services powerhouse of the British economy for the last 30 years or so is potentially going to go into decline as more and more banks move to Asia and the tough line adopted by the government was only going to accelerate that process.
The government is caught between the devil and deep blue sea in this regard; they need to be seen to be tough but they need to balance that with economy factors, and the reality of it is that the previous laisser-faire approach of successive governments since the 1980s that led to the 2008 financial crisis was so crippling that any action now is bound to be shutting the door on what is now an empty stable.
And of course, now a whole new set of unregulated sub-prime business lending is rising to fill the vacant stable to repeat the process all over again….
The published article can be read HERE
22 June 2015 By Mel Loades