Yes Willy

Will Hutton:

Britain needs a spread of regionally based, specialist banks

This is the system we had. Those regional banks then amalgamated into the national banks we now have, into Lloyds, Barclay\’s and the rest.

The dangers of regional banks can be seen in the difference between the US and Canadian experiences of the Great Depression. Thousands upon thousands of failures of regional banks in the US, as national banking was not allowed. No failures of banks in Canada where national banking was.

What Will really needs to tell us is why the banking system we had in the 1930s would be a good idea now in 2009?

3 thoughts on “Yes Willy”

  1. And because of the regulations prevented nationwide banks the government had to create Fannie Mae (to fund the fast growing western states from the cash rich eastern states) and we all know where this story ends.

  2. All Banks need is the government to actually regulate the amount of credit in it’s currency monopoly like it used to.

    The state used to do this via regulatory reserves and broadly 1/reserve ratio = credit multiple.

    Repeal Basel 2 and get banking sound again.

  3. There’s that “R” word again. Instead of national banks, have regional banks which will reinforce the regional identity at the expense of the national one. This has got the EU written all over it.

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