Alistair Darling: “Ringfencing wouldn’t have prevented the financial crisis”

Former Chancellor of the Exchequer, Alistair Darling, added his voice to the debate on banking regulation today, arguing that the ringfencing of retail banks from investment banking arms would not have prevented the crisis of 2008.

In today’s Financial Times, he says that while ringfencing is a sensible measure, a capital ratio of 25:1, as recommended in the Vickers Report, would be a much more effective buffer. Furthermore, there needs to be greater clarification on the rules governing bondholder losses. Crucially, the eurozone needs to take similar steps, which at the moment looks unlikely given Germany and France’s unwillingness to accept any ringfencing measures.

For more information on how to book Alistair Darling as a speaker, please contact Alex Hickman at alex@chartwellspeakers.com or call +44 (0) 20 7792 8004.

 

 

Politics & Government Global Economy & Finance