The Parliamentary Commission on Banking Standards, which reported in 2013, recognised the central significance of executive responsibility for systemic failure in the sector. It proposed a senior managers regime which would hold executives liable for wrongdoing in activities for which they had responsibility even if they had no specific knowledge of the improper conduct. Having accepted this recommendation, the UK government is now backtracking.
09 December 2015, Financial Times
02 December 2015, Financial Times
It is conventional to distinguish legal tax avoidance from illegal tax evasion. But the reality is that there is a spectrum. The line between the two would be clear only if the law were clear, and it is not. To combat avoidance there must be wide-ranging reform.
25 November 2015, Financial Times
British regulators have finally published their report into HBOS, the bank formed from the merger of Halifax with Bank of Scotland, more than seven years after its collapse. The 600-odd pages contain much detail on events and personalities. But there are general lessons for all businesses. Avoid the diversifier’s fallacy. Beware the winner’s curse. Fear adverse selection.
18 November 2015
Finance professionals bemoan a decline in liquidity, blaming the global crisis and the subsequent intensification of regulation. In markets such as corporate bonds, they report almost no liquidity at all. But while the ease of exchanging one asset for another matters to traders, that is not the measure of liquidity that matters to savers.
11 November 2015, Financial Times
Who owns a company? The answer is that no one does, any more than anyone owns the river Thames, the National Gallery, the streets of London, or the air we breathe. There are many different kinds of claims, contracts and obligations in modern economies, and only occasionally are these well described by the term ownership.
04 November 2015, Financial Times
The Airports Commission reported in July, with a clear recommendation to build a new runway and terminal at Heathrow. It relied heavily on an elaborate modelling exercise that calculated costs and benefits for the next 50 years. Little weight should be attached to these calculations. And more consideration should be given to the Gatwick proposal.
28 October 2015, Financial Times
The primary objective of George Osbourne’s revisions is to spend less — but at the same time to shift part of the burden of supporting poor households from the state to business; and to redistribute from households with children to individuals who work. A valid aim, but it must be done gradually to succeed.
21 October 2015, Financial Times
Bad events in organisations are generally the product of bad systems rather than bad people. So, while it is right to place responsibility for the VW scandal with the chief executive rather than the individuals who falsified emissions tests, we need to go on and ask what it is about modern corporate life that has made such misbehaviour not only possible but appear increasingly common.
17 October 2015, Prospect
If the capital costs of Heathrow expansion could be substantially reduced and its actual financing costs were also trimmed, that project would merit further consideration. Otherwise, a second runway at Gatwick appears simpler, cheaper, less risky and less politically unpalatable.
14 October 2015, Financial Times
Retailers have recently complained about the level of business rates. However, were this property tax is reduced their joy will be short lived. Business rates are both a tax on land and a tax on structures, and in the longer term all we would see is higher property values and rents, especially in prime locations.
28 December 2009, Financial Times
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