Tag: financial services

Archbishop of Canterbury takes part in Report Stage of Financial Services (Banking Reform) Bill

On 26th and 27th November 2013, the Archbishop of Canterbury, the Most Revd and Rt Hon Justin Welby, took part in both sittings of the Financial Services (Banking Reform) Bill’s Report Stage.  

Archbishop of CanterburyOn the first day of the Report Stage, he spoke about the need for the new ring-fencing structures to be supported by a ‘second reserve power’ which would give the regulator the power to fully separate all banks in the industry if one or more banks were gaming the new rules. He led a group of amendments on behalf of the Parliamentary Commission on Banking Standards, which would institute a rigorous licensing regime for significant bank employees who are not senior management. He also spoke about the need for specific measures to be developed to ensure that banks and their employees complied with anti-money laundering laws.

The Archbishop of Canterbury spoke twice during the second and final day of Report Stage. He spoke in support of Amendment 164, tabled by Lord Phillips of Sudbury, which would require a review to be undertaken into the current exemptions some banks and similar institutions enjoy from the Gaming Acts, on transactions which could be understood as gambling. He suggested that a review should examine what impact he current situation has on the culture in these institutions. He also led the debate on the Parliamentary Commission on Banking Standards’ amendment on leverage ratios. He highlighted the important role that the leverage ratio plays in the ‘tool-kit’ available to the Bank of England, and warmly welcomed the Government’s announcement that the Bank of England would undertake a review into its powers to set the leverage ratio and make recommendations on what further powers it may need.

Continue reading “Archbishop of Canterbury takes part in Report Stage of Financial Services (Banking Reform) Bill”

Bishop of Birmingham supports amendment to Banking Reform Bill

“In the wake of the economic debacles following 2008, one of the greatest areas of concern among the public was the apparent lack of change in the financial fortunes of those whom they viewed as being most responsible for the banking crisis.”

On 23rd October 2013, the Bishop of Birmingham, the Rt Revd David Urquhart, spoke during the Committee Stage of the Financial Services (Banking Reform) Bill. He spoke in support of an amendment tabled by Lord Turnbull, to require that banks and other financial institutions abide by a ‘remuneration code’, implemented and enforced by the financial regulator. The amendment, based on a recommendation by the Parliamentary Commission on Banking Standards, was not pressed to a vote during Committee Stage.

01.04.14 Bishop of BirminghamThe Lord Bishop of Birmingham: My Lords, I rise to speak on behalf of the most reverend Primate the Archbishop of Canterbury. He regrets very much that he cannot be in his seat today, but it is seldom that one has the opportunity to offer Christian baptism to a young couple, particularly when their child is a future heir to the throne of this country. None the less, I know that he, like me, would want to echo the support for these amendments, which have been spoken to by the noble Lords, Lord Turnbull and Lord Eatwell. In a sense, I now regret that I am here doing my duty, because I could not have put it better myself.

In the wake of the economic debacles following 2008, one of the greatest areas of concern among the public was the apparent lack of change in the financial fortunes of those whom they viewed as being most responsible for the banking crisis. As we have heard, the salaries of senior bankers seem to remain high and bonus levels have quickly regained their old levels, while for many ordinary people and ordinary businesses across the country, it has been a matter of tightening the belt and looking very seriously at difficult household and commercial budget decisions. The submission of the Church of England’s Mission and Public Affairs Council to the banking commission said of this disparity between what I am going to talk about as two cultures that it,

“has gravely harmed the public perception of banking”. Continue reading “Bishop of Birmingham supports amendment to Banking Reform Bill”

Archbishop of Canterbury backs calls for review into gambling in the financial sector

On 15th October 2013, the Archbishop of Canterbury, the Most Revd and Rt Hon Justin Welby, spoke during the Committee Stage of the Financial Services (Banking Reform) Bill. He spoke in support of an amendment tabled by Liberal Democrat Peer Lord Phillips of Sudbury, which sought to require a review to be undertaken into the current exemptions some banks and similar institutions enjoy from the Gaming Acts, on transactions which could be understood as gambling. Following the debate on the amendment, it was withdrawn.

Archbishop of CanterburyThe Archbishop of Canterbury: My Lords, I am slightly surprised that the Minister should be resistant to what seems to me a very reasonable amendment. One of the dangers that we have faced in the markets over many years is that of parallel markets. The derivatives markets are, as we know, opaque, as has already been remarked on, and we examined them in some detail in the banking standards commission. The computer-driven markets are also very opaque. We examined those markets and remarked that they would constitute the next great crash. When you have these gambling markets on the side that no one quite understands or knows who is participating in them, and which often take place offshore, it seems to me that at the very least there are grounds to hold an inquiry into the effect they are having on market prices through their impact on the shadow market—we should also examine the psychology of the dealers—and on those involved directly in the more regulated market. Continue reading “Archbishop of Canterbury backs calls for review into gambling in the financial sector”

Archbishop of Canterbury supports “second reserve power” amendment to Banking Reform Bill

“The amendment—and this is why the element of culture is so important—increases vastly the voltage of the ring-fence. If it has to be used, like much of these forms of regulation, it will have failed to some degree. But it says that, if the industry loses its way in ethics and culture, as it did in the early years of this century, there is catastrophe in regulatory terms.”

On 8th October 2013, the Archbishop of Canterbury, the Most Revd. and Rt Hon. Justin Welby, spoke on the first day of the Committee Stage of the Financial Services (Banking Reform) Bill. He spoke in support of Lord Turnbull’s amendment, based on the recommendation made by the Parliamentary Commission on Banking Standards, which sought to introduce a second reserve power to “implement full separation” of “the [banking] sector as a whole.” The Archbishop described the amendment as a rational extension to existing provisions. He stated that it would reinforce a change of culture and act as a permanent reminder to the banking industry of the danger of slipping back into previous norms of behaviour. The Government argued against the amendment, having previously rejected the Commission’s recommendation in its First Report. The amendment was subsequently withdrawn. 

Archbishop of CanterburyThe Archbishop of Canterbury: My Lords, I apologise that I, too, was not here for Second Reading as I was at the funeral of a close friend. I speak as a member of the PCBS [Parliamentary Commission on Banking Standards], having had the privilege of a year of lessons from the other members, especially noble Lords here today, and the great pleasure of being rung up by the noble Lord, Lawson, quite frequently at weekends, to explain how I should think about a particular subject, which he has done with great eloquence as well today.

I agree entirely with the speeches made by the noble Lord, Lord Turnbull, twice, and both speeches by the noble Lord, Lord Lawson, which have put the position very clearly. It must be a very long time—and my experience of this House is very limited—since a solution to a major problem was put forward with such a noticeable lack of enthusiasm. Almost everyone who has spoken about the ring-fence has damned it with faint praise, to put it at its most polite. The noble Baroness, Lady Cohen, simply eliminated it quite quickly and very clearly. We are in danger of getting lost in looking at the regulation and forgetting what the regulation is trying to do. This is about a question of a culture and ethics, not detailed rules. We all remember Bob Diamond, the chief executive of Barclays, saying that culture is what happens when no one is looking. Continue reading “Archbishop of Canterbury supports “second reserve power” amendment to Banking Reform Bill”