Austerity-Plan-Announced-by-British-governmentDaine Coyle

Bankers are once again doing well in the financial sector but businesses and consumers are not, which is leading to popular anger, especially as the bonus round is about to be paid. Coyle says that Project Merlin, which the British government hopes will smooth relations between the country’s banks, politicians, and the electorate, does not address the fundamental problem that Britain’s banks are uncompetitive. Competition reform, along with replacement of the complex regulations that act as barriers to entry, are now the only ways forward for the banking industry. Coyle says we need a healthy undergrowth of smaller financial institutions to balance the existing monoculture of vulnerable giants, but Project Merlin will not deliver this.

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