Cameron Calls For Transparent Money Markets

David Cameron, leader of the Conservative Party is calling for greater transparency in financial markets.  Whilst he fully supports the actions that the Financial Services Authority and the Bank of England took over the Northern Rock crisis, he says there are lots of questions, which remain unanswered.  

Mr Cameron believes that we should learn from the information that we receive to ensure that the regulatory structure is able to keep pace with modern financial markets.  Meanwhile, Liberal Democrat Shadow Chancellor Vince Cable was very clear about his opinions of the Northern Rock crisis and believes that it was a ‘product of greed and reckless gambling by overpaid executives, lax and indulgent bank regulation and a complacent Government’.  

Our view

Given the figures released yesterday, that the Bank of England has lent Northern Rock the equivalent of just under £800 per UK Citizen, over £25 bn, we suggest Mr Cameron has a point.  Financial Solvency, should be a matter of public record in a simple to understand format.   For example, using liquid assets and not fixed assets such as bricks and mortar.   Company A is 100% solvent, Company B 80% i.e.  Company A can cover its liabilities whereas Company B is overdrawn.

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