Thursday, 27 November 2008

Government 'dragging heels' on enforcing bank measures - Cable

. From Politics Home...

Mr Cable said he was "amazed" by the lack of urgency displayed by the government in tackling the financial crisis and that government directors in banks would help set to "set the strategy" in the immediate term.

"The banks are not lending, despite the undertaking that we entered a few weeks ago that the banks would maintain their lending, it isn't happening."The individual banks are acting in an entirely rational way in their view - but in the process are behaving in a suicidal manner."To ensure this doesn't happen government members should be appointed to the banks - I am amazed about the lack of urgency," he said.He accused the government of "dragging their heels" on a very important step, as companies continue to be unable to raise the capital needed.

He added: "I think the government is actually confused and embarrassed about being confused."They are effectively giving the banks completely different and contradictory measures, the banks are being pulled in different directions."

No comments: