Banks Accused of ‘Dishonesty’ on Reform

Bankers’ efforts to water down tougher new regulations by claiming they will harm economic growth are “intellectually dishonest and potentially damaging” and could inspire an even more robust crackdown, a leading UK regulator has warned.

“A profession which should stand for integrity and prudence now supports a lobbying strategy that exploits misunderstanding and fear,” said Robert Jenkins, who was named in July to the 11-member Financial Policy Committee, a new body charged with protecting financial stability.

“Banks can strengthen their balance sheets without harming the economy. They can do so by cutting bonuses, by curtailing intra-financial risk-taking and by raising term debt and equity,” he said.

http://www.cnbc.com/id/45412860

My comments: These are strong words, but I agree with the views expressed by Robert Jenkins. Actually, I prefer that commercial banks should return to their core functions of payments and loans, and should not be speculating in the markets.