Comment, analysis and other offerings from Friday’s FT,
Martin Wolf: Why the Turner report is a watershed for finance
The FT columnist writes: Lord Turner is the UK’s man for all seasons. A few years ago, he fixed pensions. Today, it is finance. The report by the new chairman of the UK’s Financial Services Authority is a turning point.The authorities of a country that used to boast of its light financial regulation have changed their minds: the UK has lost confidence in its financial sector.
Comment: Do not let the ‘cure’ destroy capitalism
Nobel prize winner Gary Becker and Clarke Medal-winner Kevin Murphy write: Capitalism has been wounded by the global recession, which unfortunately will get worse before it gets better. As governments continue to determine how many restrictions to place on markets, especially financial markets, the destruction of wealth from the recession should be placed in the context of the enormous creation of wealth and improved well-being during the past three decades. Financial and other reforms must not risk destroying the source of these gains in prosperity.
Lex on bonus bashing
Bonus hysteria is reaching new heights. The House of Representatives wants to slap a 90 per cent tax on bonuses at bailed-out companies. Political tinkering with tax codes, however, is highly suspect. What is more, dishing out massive rewards is becoming trickier anyway, as companies run low on the usual readies – cash and stock.
Gillian Tett: That secret desire for burst of Gekko-style risk-taking
The FT columnist writes: Where is Gordon Gekko when you really need him? That is a question many financiers might ask right now. In recent days, politicians on both sides of the Atlantic have railed against the antics of “greedy” speculators – and vowed to clamp down on unbridled risk-taking.
Analysis: Hypo reality
The collapse of HRE, whose future the Bundestag is today to resolve, shows Rhineland finance developed excesses just like those of the Anglo-Saxon world.
Editorial comment: Bold Bernanke leads by example
Ben Bernanke is playing his part. The Fed chairman is making sure that monetary policy is doing all it can to stem the crisis. This week, he announced that the US would begin old-fashioned Japanese-style quantitative easing. The Fed, however, will need help from the rest of the US government. The current financial and stimulus packages are not yet up to the task.