The reforms: A political safe haven or political suicide. Is the Labour bubble bursting?
Chambers, C. (2011) The reforms: A political safe haven or political suicide. Is the Labour bubble bursting? Journal of Financial Regulation and Compliance, 19 (1). pp. 5-17. ISSN 1358-1988
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Publisher's URL: http://dx.doi.org/10.1108/13581981111106130
Banking law reforms are being attacked from all political sides. Whether it is being done so for the good of the economy or whether it is being used as a political shield or sword is controversial. The banking crisis 2007 to date has spurred legislators to create new law’s, policies and declarations on how to safeguard the market from further and future catastrophic failures, which in itself is debatable given the human fallibility of actions and causes playing a significant part in the crisis. Regulations alone were not to blame but they are the control mechanism that is being reformed and overhauled. This paper looks at the most recent offering from Government and places it in the context of the political domain of 2009 -2010 being the run up to a general election. Cynical it may be but the reforms that have been promulgated are neither election winning nor losing. Labour, it appears, have tried to pay political lip service to society. The paper is therefore divided into three main parts. Firstly the paper will examine the background of the financial crisis. The second and main part of the paper is the examination and critique of the White Paper reform proposals. The paper concludes by critically examining the opposition party’s reform paper and contrasts the proposals. The paper concludes that although the bank regulation needs to be reformed it is debateable whether it is the time or the place or indeed the party that is right to achieve a successful result at the present time.