SUNDAY, 23 SEP 2018

 

CONNECT

Facebook Linked In Twitter
PWC_14/09-07/10_728x90px
Invest Cyprus 30/04-30/03/2019
IMH LTD

Andromachi Zachariou of Crowe Cyprus receives Global Achievement in Recent ACCA Exams

Guterres 'Eagerly Awaiting' Lute Report on Way Forward in Cyprus

IMH LTD
GAP_Group_2018_468x60px

INTERNATIONAL

brought to you by CIPA

Gordon Brown Warns About the Next Financial Crisis

Gordon Brown Warns About the Next Financial Crisis

The world is not ready to deal with another financial crisis, former Prime Minister Gordon Brown has told the BBC.

A breakdown in international co-operation means nations would be unable to act in a concerted way to tackle future threats - which are many.

"I feel we're sleepwalking into the next crisis", said Brown, speaking on the 10th anniversary of the start of the previous crisis.

He added that some of the bankers involved should have gone to jail.

Brown, speaking from his living room, said: "This is a leaderless world and I think when the next crisis comes, and there will be a future crisis, we'll find that we neither have the fiscal or monetary room for manoeuvre or the willingness to take that action.

"But perhaps most worrying of all, we will not have the international co-operation necessary to get us out of a worldwide crisis."

In the immediate aftermath of the collapse of Wall Street banking giant Lehman Brothers, the UK government was one of the first to press the case for using public money to recapitalise failing banks and did exactly that - pumping taxpayer funds into Lloyds, HBOS and RBS.

Brown, UK prime minister as the crisis unfolded, said that it was possible to counteract the evaporation of trust in the markets by co-ordinated action between governments and regulators that trusted each other.

"But now with the trade wars, the disagreements over climate change, the nuclear deals that have fallen apart there is no spirit of co-operation - there is division and protectionism and I fear a new crisis would see nations trying to shift the blame to each other."

He acknowledged that the use of public money to bail out high earning bankers was a difficult pill for the public to swallow and although he insists it was necessary, he says that he is frustrated that harsher penalties weren't dished out to some of the bankers involved.

"I'll be honest with you. Some of these bankers should have gone to jail and until we have proper laws that can find the guilty and show there are clear penalties, then people will think the bankers have got away with it and will go back to doing the same thing again."

What blame does he bear himself? Former governor of the Bank of England, Mervyn (Lord) King has been critical of the way his government designed the regulatory regime - moving bank supervision away from the central bank to the Financial Services Authority.

Brown acknowledges that it didn't work perfectly, but argues that the system was designed to look at isolated outbreaks of bank distress - not a contagion which consumed the entire global financial system.

No national warning system, he says, was equipped to see the full picture and no individual country could have tackled the meltdown.

A global problem needs global co-operation. Without that - and with most of the tools available already used (rock bottom interest rates, trillions pumped into the system through quantitative easing) - Brown paints a grim picture of our ability to face the next crisis.

 

 

MORE ON INTERNATIONAL

First Jack’s Customers Sample New Store

Heavy rain and winds did not deter bargain-hungry shoppers on the opening day ...

Italy Opens Probe into Ryanair Hand Luggage Charges

Italy's competition watchdog has opened an inquiry into Ryanair's decision to ...

Tesco Opens Discount Store Jack's to Take on Lidl and Aldi

Tesco has started a new front in its battle to win back shoppers from Aldi and Lidl with ...

FROM AROUND GOLDNEWS

   

Invest Cyprus Presents Investment Opportunities in Cyprus in view of Brexit

The Cyprus Investment Promotion Agency (Invest Cyprus), presented the investment opportunities that Cyprus can offer in view of Brexit, in an event that took ...
   

First Jack’s Customers Sample New Store

Heavy rain and winds did not deter bargain-hungry shoppers on the opening day of Tesco’s new discount chain, Jack’s, with long queues to enter ...
   

Italy Opens Probe into Ryanair Hand Luggage Charges

Italy's competition watchdog has opened an inquiry into Ryanair's decision to charge people to take hand luggage on to the plane. Antitrust said ...
   

Spehar Highlights Importance of CBMs and Civil Society Involvement in Peace Process

Elizabeth Spehar, the UN Secretary General`s Special Representative in Cyprus and Head of UNFICYP, highlights the importance of trust-building, engaging in ...
   

100 New Employees Join KPMG

Last week, KPMG in Cyprus hosted a Welcoming Event at their offices in Nicosia, for the 100 newly-hired members of staff who joined the Firm’s workforce. ...
   

Andromachi Zachariou of Crowe Cyprus receives Global Achievement in Recent ACCA Exams

Andromachi Zachariou, Staff Accountant of Crowe Cyprus, has scored the highest mark in Cyprus and the 21st position worldwide on the “F8 - Audit and ...
   

Bottega Prosecco Ranks Number Two in Global Travel Retail

According to data from drinks analysts IWSR on Champagne and sparkling wine brands in duty free, the Italian distillery and winery produces one of the ...
   

Rising Exports Push Cyprus Trade Deficit Down in First Half of 2018

Cyprus’ trade deficit dropped by €320,7 million in the first six months of the year, compared to the same period of 2017, as exports rose by ...
 

YOUR COMMENTS

HEADLINES

MOST POPULAR

Deloitte_2016_300x250px
Gold_Issue_300x250px

IMH LTD