(Before It's News)
Sir, Ruth Gillbe reports in FT’s Adviser that Lord Adair Turner now opines “peer-to-peer lenders … might be able to do credit underwriting as well as established banks”. “Lord Turner u-turns on P2P mis-selling
” October 12.
No, let us hope they can do it much better, and for that a prerequisite is for the scheming and hubris filled bank regulation technocrats, to stay out of their way.
Let us be clear, the P2P lending is taking off, somewhat, much because regulators, such like former chairman of the Financial Services Authority Lord Turner, with their risk weighted capital requirements, gave banks incentives to go only to where it was perceived, decreed or concocted as “safe”, and stay away from what was perceived as “risky”
Sir let us hope (pray) these regulators wake up and stop distorting the allocation of bank credit; since just with P2Ps it will not be enough to get our economies going again.
Chances of that are slim though. Can you imagine a Lord Adair Turner bowing humbly and asking for forgiveness, like a failed Japanese executive could do?