Thursday, September 20, 2007

Hands tied by MAD red tape

Mervyn King, the Governor of the Bank of England today admitted that his hands were tied with red tape when it came to helping the beleaguered North Rock bank.

He singled out for the EU's Market Abuse Directive as one of the key regulations that blocked his room for manoeuvre, the Directive known by the acronym MAD plus other legislation has shown that the independence of the Bank of England is nothing more than a sham.

Given that Gordon Brown's reputation as Chancellor is based on making the Bank independent it shows that this was always a myth.

Mr King had wished to render assistance to the bank quietly, but the rules forced him to disclose the assistance which inevitably led to the panic we saw on our high streets.

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