Kohn
- Leverage ration of 3% too low in long run
- Biggest risk is UK, Europe economic weakness
- UK lenders periphery exposures pose risks
- FPC may need power to address loan to value ratios
Haldane
- Wanted FPC to have directive powers on leverage ration
- FPC’s communications record has been mixed so far
- Operational risk, too big to fail among top risks
- Search for yield, low rates also among top risks
In typical UK fashion we create a body to oversee and manage the financial system and to highlight and act on any systemic risks, yet all I’ve heard from FPC members is that they are lacking a lot of the powers needed to do the job.
It’s coming across as another half-arsed scheme that is working with one hand tied behind it’s back. It’s spent more time in poxy parliamentary meetings than it has doing the job it should.
Rant over…….for now.