The reforms: a political safe haven or political suicide – is the Labour bubble bursting?
| Pages | 5-17 |
| Published date | 22 February 2011 |
| Date | 22 February 2011 |
| DOI | https://doi.org/10.1108/13581981111106130 |
| Author | Clare Chambers |
| Subject Matter | Accounting & finance |
The reforms: a political safe
haven or political suicide –
is the Labour bubble bursting?
Clare Chambers
Commercial Law Research Unit, Bristol Law School,
University of the West of England, Bristol, UK
Abstract
Purpose – The purpose of this paper is to examine the political influence on the reforms proffered for
the banking sector.
Design/methodology/approach – The paper is divided into three main parts. First, 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.
Findings – 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.
Research limitations/implications – The implications for the research is that during the next year
banking reforms will undergo further changes, therefore, there will be a requirement to revisit and revise
the findings in light of the political agenda of the new government.
Originality/value – This paper offers an original insight into the political influences on banking
regulation within the UK.
Keywords United Kingdom,Regulation, Politics, Banking
Paper type Research paper
Introduction
Our Economy has a clear need for well managed, well functioning banks and financial
institutions – to perform a vital set of functions – channelling investment and helping people
save and plan for the future. But regulators and governments must too learn lessons from the
events of the last two years – better understanding the risks that come from globalisation in
the financial system.
Our central objective must be to ensure that – as we come through the downturn – we
reform and strengthen our financial system and rebuild it for the future. With consumers that
are better informed, financial institutions that are better managed and markets that are better
regulated! (Darling, 2009).
Banking law has undergone a tumultuous two years. Its road has definitely not been
smooth. Whilst the banks and the economy have undergone catastrophic failures,
the law has attempted to keep pace. The Labour Government has published over
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1358-1988.htm
Since this paper was accepted for publication, a UK general election was held in May 2010. A new
coalition government was formed between the Conservative Party and the Liberal Democrats
and a new parliament was assembled.
For Bruce Jones: my inspiration for this paper.
Is the Labour
bubble bursting?
5
Journal of Financial Regulation and
Compliance
Vol. 19 No. 1, 2011
pp. 5-17
qEmerald Group Publishing Limited
1358-1988
DOI 10.1108/13581981111106130
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