Letters to the Editor – 28/11 – Scots referendum, Bank ringfence, Best of Twitter
Scots referendum
[Re: Financial and economic flaws in the SNP’s plan make the case for Union, yesterday]
I agree with Alistair Darling. Currency union requires political union, as demonstrated by the euro experience. It would be foolish to repeat the same mistake here. Meanwhile, Scotland having its own currency would increase the cost of selling to the UK. Could this result in Scottish companies (with primarily English customers) relocating a few miles south? In addition, Scottish wholesalers, dealing with a population of just 5.3m, may not have the same buying power after independence. This could result in the cost of goods rising.
Gary Tagg
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Bank ringfence
[Re: Clash looms in Parliament over Banking Bill, Tuesday]
The idea that a ringfence, “electrified” or otherwise, would make the UK financial system significantly safer is misguided. As the experiences of Northern Rock and Bradford & Bingley suggest, isolated retail banking is by no means inherently safer than investment banking. If anything, institutions with both divisions may be able to diversify risks to a greater extent. Further, implementation of the plan could lead to higher compliance costs for banks, which would likely be passed on to the consumer.
Melissa Harmsworth
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BEST OF TWITTER
German financial transactions tax is bad for Frankfurt, will cement London as the leading financial centre.
@minefornothing
UK services exports make up more than 12 per cent of GDP, versus 6 per cent for Germany, 4 per cent for US.
@asentance
As UK exports fall, am I the only person worried about the UK balance of payments situation?
@notayesmansecon
Silvio Berlusconi has never been as weak. Yet he’s down but not out.
@AlbertoNardelli