223 lines
5.9 KiB
Plaintext
Executable File
223 lines
5.9 KiB
Plaintext
Executable File
finance
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comment
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damianreece
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8414671
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-----
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# Independent Commission on Banking could destroy London's place as top
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financial centre
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## Before extolling the virtues of advanced manufacturing and other desirable
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enterprises in his Budget speech last week, George Osborne said: "Yes, we want
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the City of London to remain the world's leading centre for financial
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services…"
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![Independent Commission on Banking could destroy London's place as top
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financial centre ][1]
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The ICB's interim report will test George Osborne's vision for Britain
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[![Damian Reece][2]][3]
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By [Damian Reece][4], Head of Business 6:45AM BST 30 Mar 2011
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[Comments][5]
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Compare that aspiration to the assessment on Tuesday by Douglas Flint,
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chairman of HSBC: "We worry a lot about where the UK is going in terms of
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business model and permitted activities."
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The biggest test of the Chancellor's vision for Britain will come in a
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fortnight's time with the publication of the Independent Commission on
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Banking's (ICB) interim report. It won't just be read with interest by
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bankers. Their customers will also be poring over it.
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If the customer trying to organise a 10-year interest rate swap or a 15-year
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credit arrangement is uncertain about the future of the UK bank they're
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currently dealing with, it's natural they'll at least listen to a big bank not
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affected by the ICB's recommendations. Which is why banks in America and
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Germany will also be reading the ICB's conclusions with deep interest.
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Both countries stand to emerge with less restrictive rules on what a bank can
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do and how it should be organised. They're already smelling a competitive
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advantage.
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But just that threat of business moving away from them will force the likes of
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HSBC and Barclays to act to protect their commercial positions. Shareholders
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will expect it.
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## Related Articles
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* [Q&A: What is the Independent Commission on Banking?][6]
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08 Apr 2011
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* [The banking crisis in pictures][7]
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30 Mar 2011
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* [Banks up the ante: hollow threats or endgame?][8]
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30 Mar 2011
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* [UK banks could lose out to rivals 'in months'][9]
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30 Mar 2011
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We already know that wholesale funding markets, the source of short-term
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liquidity for banks, are likely to review their credit lines to banks in the
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wake of the ICB report. There is much at stake.
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But is this all just posturing by Flint and his banking counterparts?
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Yes, in the sense banks have a great deal invested in the UK and don't want
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their positions here undermined. But Flint very deliberately at the end of his
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speech highlighted the growth expected in the Far East and how well positioned
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HSBC is there in terms of funding and ability to grow. Mike Geoghegan, when
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HSBC chief executive, relocated his job there. If it pays for shareholders,
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then moving the legal and regulatory base abroad will occur first. As the
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bank's centre of gravity shifts, other operations will follow.
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London will never be emptied of bankers but there'll simply be less of the
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economically most important ones. And that goes for customers too, as the old
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adage of "follow the money" once again rings true.
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[X][10] Share & bookmark
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[What are these?][11]
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* Share: [Share][10] [ ][12] [ ][13]
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[Tweet][14]
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http://www.telegraph.co.uk/finance/comment/damianreece/8414671/Independent-
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Commission-on-Banking-could-destroy-Londons-place-as-top-financial-centre.html
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Telegraph
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## [Damian Reece][3]
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* ### [Finance »][15]
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* ### [Comment »][16]
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* ### [News by Sector »][17]
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* ### [Banks and Finance »][18]
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* ### [Business Latest News »][19]
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In finance
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[![Vodafone's spring clean prepares the ground for US deal][20] ][21]
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### [Vodafone's spring clean prepares the ground for US deal][21]
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[![Everyone who should have spotted the financial crisis, didn't.The Financial
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Services Authority, Bank of England, Treasury and our legislature, including
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the House of Lords, failed. Bank auditors didn't blow the whistle either.][22]
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][23]
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### [Auditors should not be blamed for the financial crisis any more than
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MPs][23]
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[![Independent Commission on Banking could destroy London's place as top
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financial centre ][24] ][25]
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### [Banking report could destroy London's place as top financial centre][25]
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[X][10] Share & bookmark
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Delicious Facebook Google Messenger Reddit Twitter
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Digg Fark LinkedIn Google Buzz StumbleUpon Y! Buzz
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[What are these?][11]
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Share:
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* [ ][10]
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* [ ][12]
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* [ ][13]
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* [Tweet][14]
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* Advertisement
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![][26]
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telegraphuk
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Please enable JavaScript to view the [comments powered by Disqus.][27] [blog
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comments powered by Disqus][28]
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Advertisement
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[Market Data »][29]
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sponsored features
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3. [BMW blames speculators as aluminium costs rise][32]
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4. [US consumers in spending retreat][33]
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5. [Google sued by PayPal in Silicon Valley's mobile war][34]
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1. [What happens when Greece defaults][35]
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2. [Dominique Strauss-Kahn: DNA samples confirm sperm traces on maid's
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dress][36]
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4. [Dominique Strauss-Kahn: new claims of sexual misconduct add to pressure
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on former IMF chief][38]
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5. [How the euro crisis end game might look][39]
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1. [What happens when Greece defaults][35]
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2. [Dominique Strauss-Kahn: IMF head 'hired prostitutes from Manhattan
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madam'][40]
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3. [Dominique Strauss-Kahn: DNA samples confirm sperm traces on maid's
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dress][36]
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4. [A tax-based alternative to the Alternative Vote][41]
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5. [Dominique Strauss-Kahn: maid experienced 'extraordinary trauma'][42]
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Advertisement
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Classified Advertising
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* [Services][43]
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* [Public Sector Jobs][44]
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[Find your ideal job with Telegraph Jobs][45]
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var puffs_8254894 = new Array();
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