Gordon Brown has today, finally admitted that, under his watch, bank regulation was for not fit- for- purpose. His really big error was stripping the Bank of England of it's powers to regulate UK Banks. He should now admit that this was huge error.
Gordon Brown continues to this day to be in denial and will not accept this was a great mistake. Time to make another admission Gordon.
Here is the TIMELINE to the biggest bank bungle ever.
This timetable shows how the cock-up occurred.
January 1997. Gordon Brown and Tony Blair discuss with Eddie George plans to offer Bank operational independence. Removal of supervisory role is raised but George is assured nothing will happen without consultation.
April 1997. Brown decides to offer Bank a package by giving it independence but taking away supervision.
2 May 1997. Brown discusses approach with Treasury officials. Last-minute intervention by senior civil servant persuades him to drop idea of withdrawing supervision.
5 May. Brown informs George of Bank's operational independence. He says there will be no decision on supervision without consultation.
6 May. Brown announces decision at press conference but hints that supervision will be examined.
8 May. Cabinet meets to discuss Queen's Speech contents. Reform of Financial Services Act which would revamp City regulation receives low priority.
14 May. Queen's Speech leaves out reform of FSA but includes bill enabling Bank's independence.
15 May. Brown's advisers suggest regulatory reform can be accelerated by linking it to Bank legislation.
19 May. Brown tells George bank supervision will be transferred to an enlarged SIB. George and other Bank officials are enraged by what they see as a betrayal of trust.
20 May. Brown announces reform to Parliament.
21 May. George tells press he considered resigning. His remarks are used by a Brown adviser to stir up campaign against George.
22 May. City bankers offer public support for George. Pound falls on fears he will be replaced.
23 May. Government officials attempt to patch up rift.
Gordon's self confessed lax regulation also allowed both AIG and Lehman Bros to transact trillion dollar risks in London that were not allowed in the USA.
Meliden - Updated Wed 14th April 2010
