Damning verdict on City: ‘No longer fit for purpose’ – The Independent


The Liberal Democrat Treasury spokesman on a v...

The Liberal Democrat Treasury spokesman on a visit to Cambridge today. (Photo credit: Wikipedia)

A report commissioned by business secretary Vince Cable was made public earlier this week and finds a financial sector that is no longer fit for purpose. Professor John Kay, a leading economist, has made his recommendations after scores of submissions and interviews with top business and investment people.

In particular, Prof Kay says that regulation needs an overhaul and that traders seeking short-term profits are not acting in the wider interests of the public and should be marginalised.

His review comes when the stock of the banking sector has never been lower, given a seemingly constant run of scandals involving rogue trading, interest rate fixing and global money laundering.

The report finds that short-termism is an underlying problem in UK equity markets, principally caused by a misalignment of incentives within the investment chain and the displacement of trust relationships by a culture based on transactions and trading.

 His recommendations, which are aimed at key players in UK equity markets, as well as Government and regulators, look to:

  • Improve the incentives and quality of engagement, including by establishing an Investor Forum to foster more effective collective engagement by investors with UK companies
  • Restore relationships of trust and confidence in the investment chain, including by applying fiduciary standards more widely within the investment chain
  • Change the culture of market participants, including by adoption of ‘good practice statements’ by company directors, asset managers and asset holders that promote a more expansive form of stewardship and long-term decision-making throughout the investment chain
  • Realign incentives by better relating directors’ remuneration to long-term sustainable business performance and better aligning asset managers’ remuneration to the interests of their clients

Damning verdict on City: ‘No longer fit for purpose’ – Business News – Business – The Independent.

e-petition:: join the call for a Judge-led inquiry into banking


Fed up listening to all the media talk around symptoms with fines to swell Govt. coffers whilst we carry all the burden? Sign this petition calling for a judge-led inquiry into fraud, ethics and wrongdoing in British banks and the role of the British Bankers’ Association:

We the undersigned call for an independent, judicial public enquiry into fraud, wrongdoing and ethics of British banks, their management and their staff, and the role of the British Bankers Association. The terms of reference of this inquiry should also include the manipulation of interest rates on about £225 trillion of assets. The inquiry must have full powers to compel witnesses to appear on oath, and to obtain all forms of evidence.

http://epetitions.direct.gov.uk/petitions/35421

What is it “they” say about learning from history?:: Neil Kinnock (1983)


Of course, in 1983, Neil Kinnock was warning of the perils, if Margaret Thatcher were elected. He was right then but little did any of us know how prophetic these words were now we are dealing with the legacy of the culture “sewn” 30 years ago.

I warn you that you will have pain–when healing and relief depend upon payment.

I warn you that you will have ignorance–when talents are untended and wits are wasted, when learning is a privilege and not a right.

I warn you that you will have poverty–when pensions slip and benefits are whittled away by a government that won’t pay in an economy that can’t pay.

I warn you that you will be cold–when fuel charges are used as a tax system that the rich don’t notice and the poor can’t afford.

I warn you that you must not expect work–when many cannot spend, more will not be able to earn. When they don’t earn, they don’t spend. When they don’t spend, work dies.

“Complexity, Concentration and Contagion”:: Andy Haldane & Bank of England making progress


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We should all be grateful that “thinkers” like Andy Haldane are in positions of influence. The only problem being that, at the current rate, YET AGAIN, we stand to learn the most painful of lessons after-the-event instead of embracing tools that can provide crisis anticipation or “anticipatory awareness” to (if not avoid) then mitigate the impact of contagion.

The excellent author, Mark Buchanan, recently wrote:

Over the past three decades, the global financial system has become more dynamic and interconnected, more concentrated and complicated than ever before. Financial engineering seems to know no limits to creating new instruments that link institutions in new ways.

Is that a good thing? Or could the resulting financial network be too complex? Or, perhaps, complex in the wrong way?

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Hierarchies of Understanding:: data is useful, INFORMATION “invaluable”


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I’m as good (or bad) at understanding humans and human learning as the next person! I am not an “educator” just someone who, I suspect (like everyone else), has at some time or other felt swamped: by too much to do; too much to absorb; too little time. We know that people learn in different ways and at different speed and, quite apart from Carpenter & Cannady, there are any number of alternative views on HoU…take your pick!

What I like about the C&C approach is that it reflects an ongoing process – we ARE (or should be) constantly learning – with feedback from our environment shaping our perspectives. On one occasion rendering the “expert” a “novice” and, on another, providing the vital “missing piece” that transforms information to knowledge and, through understanding, to wisdom.

In the beginning was information*…

But, ever the contrarian, I can’t ignore the fact that, the limitations to obtaining data (about anything) pertaining to that which we are observing, are our own!

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