Bank of England speech undermines Treasury paper
In a speech today at an international conference, Paul Tucker, the Bank of England’s Deputy Governor for Financial Stability, outlines the virtues of cross-border co-operation in financial regulation - and in doing so shatters Scottish Secretary Michael Moore’s Treasury paper which scaremongers on financial regulation in an independent Scotland.
Stewart Hosie MP, the SNP’s Treasury Spokesman at Westminster, said:
"Timing is everything, and the Treasury paper has been completely undermined by Mr Tucker’s speech today - which is all about the importance of cross-border co-operation in financial regulation in order to protect taxpayers.
"While Michael Moore scaremongers in Edinburgh on behalf of the No campaign, Paul Tucker for the Bank of England reflects the reality at an international conference.
"Coming hot on the heels of the admission by Denis Healey that the UK Government played down the extent of Scotland's North Sea resources in the 1970s as part of the campaign to oppose independence, today's paper is another example of why it's time for the No campaign to pulp the fiction about Scotland's abilities."
Paul Tucker – the Bank of England's Deputy Governor for Financial Stability and a member of both the Financial Policy Committee (FPC), the Monetary Policy Committee (MPC) and the Board of the Prudential Regulation Authority - is speaking at the 9th World Congress of the International Association of Restructuring, Insolvency and Bankruptcy today:
Mr Tucker explains how resolution is essential to solving the problem of Too Big to Fail: “...if you believe in an international financial system that is not only free but also safe, in shielding taxpayers from the risks in banking, and in shielding banking from politics, you will be committed to making a success of resolution”.
Both approaches, he says, rely upon coordination between home and host authorities, noting: “Over recent months there has been marked convergence in how the world’s key authorities plan to approach resolution”, with a FDIC (USA) /Bank of England joint paper on resolution only one example of intensified cooperation.”
“Indeed, it is not an exaggeration to say that the EU’s Directive is the keystone to breaking the back of the TBTF problem.”