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Version 1 Version 2
George Osborne: Public rightly angry about bad bankers - business live George Osborne: Public rightly angry about bad bankers - business live
(35 minutes later)
4.44pm GMT16:44
Sir Jon Cunliffe, deputy governor at the Bank of England on credit:
John cunliffe responding to my earlier Q: ''credit is a public good like water - like water you can drown in it.'' Quite so. #BoEOpenForum
4.40pm GMT16:40
A rival candidate for quote of the day, from the final panel going on now. Talking about debt and credit, the Reverend Canon Giles Fraser said:
We are approaching this terrible time called Christmas.. go into the Westfield shopping centre and you’ll see tens of thousands of people buying lots of things they don’t want with money they don’t have for people they don’t like.
We’re encouraged to do this because of this thing called growth. I worry about moral hazard of debt...
Updated at 4.42pm GMT
4.28pm GMT16:28
Nobody knows how money works these days, we just hope it's there when we need it - quote of the day Blythe Masters #BoEOpenForum
Blythe Masters, the chief executive of Digital Asset Holdings, was speaking at one of the afternoon sessions.
4.25pm GMT16:25
But there is a divergence between how the bankers and the public think reform of the sector is going:
Great comments by Gillian Guy @CitizensAdvice on gulf between industry and public on how banking reform is going #BoEopenforum
'Not enough for the public to understand finance. The financial industry needs to understand the public'. Gillian Guy at #BoEOpenForum
Updated at 4.29pm GMT
4.23pm GMT16:23
Adding to the theme of banking and its wider role in society as heard at the Bank of England’s open forum, Mark Taylor, Dean of Warwick Business School and a former senior economist at the Bank, said:
Mark Carney is on a charm offensive in order to encourage the public to think about bankers in a better way. After all we need a strong financial sector, it represents eight per cent of the UK’s GDP and 20 per cent of income in London alone. It is an important part of the economy, and in order to grow other sectors like manufacturing we need a strong financial sector. But the banking sector needs to act ethically and in the best interests of society for it to work properly. We need bankers to think of their impact on society and not just on their wallet.
4.03pm GMT16:034.03pm GMT16:03
European Central Bank president Mario Draghi may not have caused any market moving sparks in his speech at the Open Forum earlier.European Central Bank president Mario Draghi may not have caused any market moving sparks in his speech at the Open Forum earlier.
But Reuters is reporting that the ECB is considering extending its QE programme by buying municipal bonds of cities like Paris or regions like Bavaria, according to sources. Reuters says:But Reuters is reporting that the ECB is considering extending its QE programme by buying municipal bonds of cities like Paris or regions like Bavaria, according to sources. Reuters says:
This regional bond buying could be one in a series of measures to be rolled out in the coming months, although one of the sources said time was short for a full launch in December and that this would likely come by March next year.This regional bond buying could be one in a series of measures to be rolled out in the coming months, although one of the sources said time was short for a full launch in December and that this would likely come by March next year.
The ECB declined to comment.The ECB declined to comment.
Despite the ECB’s scheme of quantitative easing (QE) to buy chiefly state bonds, the eurozone’s economy is growing only modestly and the central bank is urgently considering what more it can do to improve it and stagnant price inflation.Despite the ECB’s scheme of quantitative easing (QE) to buy chiefly state bonds, the eurozone’s economy is growing only modestly and the central bank is urgently considering what more it can do to improve it and stagnant price inflation.
As part of preparations for the next rate-setting meeting of policy-setters on Dec. 3, ECB officials are now analysing whether and how to extend its shopping list to municipal bonds, issued by, say, Madrid or Mainz, or a federal German state.As part of preparations for the next rate-setting meeting of policy-setters on Dec. 3, ECB officials are now analysing whether and how to extend its shopping list to municipal bonds, issued by, say, Madrid or Mainz, or a federal German state.
“You have big markets, such as Spain and Italy. France has a well developed market,” said one person.“You have big markets, such as Spain and Italy. France has a well developed market,” said one person.
According to data from Thomson Reuters IFR, almost $500 billion of bonds issued by European cities and regions are in circulation. The regions have sold more than $76 billion of bonds over the last year.According to data from Thomson Reuters IFR, almost $500 billion of bonds issued by European cities and regions are in circulation. The regions have sold more than $76 billion of bonds over the last year.
The source said that while some cities were risky, they had the fallback of central governments. Municipal bonds typically have a lower credit rating than governments. It is a fragmented market in Europe, with many small issues.The source said that while some cities were risky, they had the fallback of central governments. Municipal bonds typically have a lower credit rating than governments. It is a fragmented market in Europe, with many small issues.
3.51pm GMT15:513.51pm GMT15:51
Back with the Bank of England’s Open Forum, and here’s something to illustrate the main themes, ahead of the day’s summing up.Back with the Bank of England’s Open Forum, and here’s something to illustrate the main themes, ahead of the day’s summing up.
Here's some of the key themes and challenges coming out of #BoEOpenForum drawn by our visual artists pic.twitter.com/wEo8fKFd5xHere's some of the key themes and challenges coming out of #BoEOpenForum drawn by our visual artists pic.twitter.com/wEo8fKFd5x
3.47pm GMT15:473.47pm GMT15:47
Elsewhere, the Bank of Spain has said the country’s third quarter GDP grew 0.8% quarter on quarter.Elsewhere, the Bank of Spain has said the country’s third quarter GDP grew 0.8% quarter on quarter.
It repeated its estimate of 3.1% growth in 2015 and 2.7% in 2016. But it admits the risks to these forecasts have increased since June.It repeated its estimate of 3.1% growth in 2015 and 2.7% in 2016. But it admits the risks to these forecasts have increased since June.
3.41pm GMT15:413.41pm GMT15:41
Meanwhile in Greece, the country’s banks will need less than €10bn for recapitalisation, MNI is reporting.Meanwhile in Greece, the country’s banks will need less than €10bn for recapitalisation, MNI is reporting.
3.13pm GMT15:133.13pm GMT15:13
There’s not much to argue with here....and maybe that’s the problem:There’s not much to argue with here....and maybe that’s the problem:
Participants in the Edinburgh #BoEOpenForum are reporting back on the themes of their round-table discussions pic.twitter.com/rusB3xCnIkParticipants in the Edinburgh #BoEOpenForum are reporting back on the themes of their round-table discussions pic.twitter.com/rusB3xCnIk
Increasing financial education, transparency, trust and responsibility are big themes of the groups' findings so far #BoEOpenForumIncreasing financial education, transparency, trust and responsibility are big themes of the groups' findings so far #BoEOpenForum
3.11pm GMT15:113.11pm GMT15:11
Some analysis of Draghi’s speech:Some analysis of Draghi’s speech:
This speech is definitely a thinly veiled attack on Cameron's vision of a capital market union supervised by natl institutions #BoEOpenForumThis speech is definitely a thinly veiled attack on Cameron's vision of a capital market union supervised by natl institutions #BoEOpenForum
Just read this whilst listening at #BoEOpenForum - Draghi makes the case for the EU if you want a single market https://t.co/M3yg2DezwVJust read this whilst listening at #BoEOpenForum - Draghi makes the case for the EU if you want a single market https://t.co/M3yg2DezwV
3.03pm GMT15:033.03pm GMT15:03
Superb comments by @MazzucatoM on how rent-seeking and VC short-termism undermine value-creating financial innovation at #BoEOpenForumSuperb comments by @MazzucatoM on how rent-seeking and VC short-termism undermine value-creating financial innovation at #BoEOpenForum
3.00pm GMT15:003.00pm GMT15:00
Professor Mariana Mazzucato has been busy debunking hype in the world of financial innovation.Professor Mariana Mazzucato has been busy debunking hype in the world of financial innovation.
She told a panel at the Open Forum that many new wizzy ideas have actually helped companies to extract wealth, and give very little back society:She told a panel at the Open Forum that many new wizzy ideas have actually helped companies to extract wealth, and give very little back society:
Financial innovation has increased outsized free riding/rent extraction effect in GDP not reduced it, says @MazzucatoM (my hero)Financial innovation has increased outsized free riding/rent extraction effect in GDP not reduced it, says @MazzucatoM (my hero)
We need the right sort of innovation, not rent seeking innovation, says @MazzucatoM #boeopenforumWe need the right sort of innovation, not rent seeking innovation, says @MazzucatoM #boeopenforum
2.53pm GMT14:532.53pm GMT14:53
Has the Bank of England done any war gaming and worked out under what conditions it would intervene in the markets?Has the Bank of England done any war gaming and worked out under what conditions it would intervene in the markets?
Couldn’t possibly say, Minouche laughs. But generally, Bank officials have done a lot of work on this general issue to prepare for a liquidity crisis.Couldn’t possibly say, Minouche laughs. But generally, Bank officials have done a lot of work on this general issue to prepare for a liquidity crisis.
2.40pm GMT14:402.40pm GMT14:40
Axel Weber, chairman of UBS, warns there is a ‘vacuum’ in the markets now as some institutions - such as UBS - no longer act as market makers.Axel Weber, chairman of UBS, warns there is a ‘vacuum’ in the markets now as some institutions - such as UBS - no longer act as market makers.
He cites the impact of new tougher regulations, which make it too risky and costly.He cites the impact of new tougher regulations, which make it too risky and costly.
And that could be a risk, when the next crisis strikes and everyone wants liquidity....And that could be a risk, when the next crisis strikes and everyone wants liquidity....
2.37pm GMT14:372.37pm GMT14:37
BoE's Shafik: Very real risks in emergency liquidity operationsBoE's Shafik: Very real risks in emergency liquidity operations
Flicking between this afternoon’s discussions at the Open Forum, there’s a lot of talk about market liquidity.Flicking between this afternoon’s discussions at the Open Forum, there’s a lot of talk about market liquidity.
Asset managers are explaining that liquidity could easily evaporate once the next crisis strikes, as many investors have already cut their exposure to riskier assets.Asset managers are explaining that liquidity could easily evaporate once the next crisis strikes, as many investors have already cut their exposure to riskier assets.
And deputy governor Minouche Shafik is also discussing it, saying:And deputy governor Minouche Shafik is also discussing it, saying:
Liquidity is a public good, and central bankers have a duty to guarantee it.Liquidity is a public good, and central bankers have a duty to guarantee it.
And the last crisis showed that central banks can widen their remit and pump money into non-banks (such as insurance group AIG in America).And the last crisis showed that central banks can widen their remit and pump money into non-banks (such as insurance group AIG in America).
But there are “very real risks”, Shafik continues, in acting like a market-maker of last resort, and buying assets when everyone wants to sell.But there are “very real risks”, Shafik continues, in acting like a market-maker of last resort, and buying assets when everyone wants to sell.
1) The moral hazard issue: banks won’t worry about maintaining their own liquidity levels if they think the BoE will save them.1) The moral hazard issue: banks won’t worry about maintaining their own liquidity levels if they think the BoE will save them.
2) Financial risks: liquidity operations are much riskier than simply buying assets, And its harder to tell if an entity is solvent.2) Financial risks: liquidity operations are much riskier than simply buying assets, And its harder to tell if an entity is solvent.
3) Political risks: there are ‘distributions’ consequences (ie: wealth distribution -- bank assets are owned by the rich, but bailouts are paid by everyone)3) Political risks: there are ‘distributions’ consequences (ie: wealth distribution -- bank assets are owned by the rich, but bailouts are paid by everyone)
So, it should only be a ‘last line of defence’, Shafki concludes.So, it should only be a ‘last line of defence’, Shafki concludes.
Updated at 2.50pm GMTUpdated at 2.50pm GMT
2.24pm GMT14:242.24pm GMT14:24
Over on Wall Street, e-commerce magnate Jack Ma is preparing to ring the opening bell:Over on Wall Street, e-commerce magnate Jack Ma is preparing to ring the opening bell:
MOMENTS AWAY: Alibaba CEO Jack Ma rings the NYSE opening bell from China & then joins @SquawkStreet LIVE. pic.twitter.com/COPNZMfEbRMOMENTS AWAY: Alibaba CEO Jack Ma rings the NYSE opening bell from China & then joins @SquawkStreet LIVE. pic.twitter.com/COPNZMfEbR
He’s got the honour because today is Singles Day - the world’s biggest day for online shopping (invented by, you guessed it, Alibaba).He’s got the honour because today is Singles Day - the world’s biggest day for online shopping (invented by, you guessed it, Alibaba).
2.18pm GMT14:182.18pm GMT14:18
There are now more ‘breakout sessions’ underway - you can follow them here:There are now more ‘breakout sessions’ underway - you can follow them here:
An open discussion on the role of markets in societyAn open discussion on the role of markets in society
(there’s an icon in the top left corner to click to jump between them)(there’s an icon in the top left corner to click to jump between them)
2.11pm GMT14:112.11pm GMT14:11
What does Mario Draghi mean when he calls for a “uniform deposit insurance scheme”?What does Mario Draghi mean when he calls for a “uniform deposit insurance scheme”?
Well, back in June, he and four other eurozone presidents called for an EU-wide deposit insurance by 2017. That would sit on top of existing national deposit schemes, providing extra protection.Well, back in June, he and four other eurozone presidents called for an EU-wide deposit insurance by 2017. That would sit on top of existing national deposit schemes, providing extra protection.
Currently, each eurozone nation guarantees €100,000 of savings if a bank goes under. Those guarantees, though, are only as strong as the country in question.Currently, each eurozone nation guarantees €100,000 of savings if a bank goes under. Those guarantees, though, are only as strong as the country in question.
1.47pm GMT13:471.47pm GMT13:47
This is a bit harsh:This is a bit harsh:
#Draghi nods off during his own speech pic.twitter.com/sy5VG9KsS3#Draghi nods off during his own speech pic.twitter.com/sy5VG9KsS3
OK, it wasn’t the speech you’ll tell your grandchildren about - but this is serious, nitty-gritty stuff, with major ramifications if regulators make another hash of things.OK, it wasn’t the speech you’ll tell your grandchildren about - but this is serious, nitty-gritty stuff, with major ramifications if regulators make another hash of things.
The whole speech is online here.The whole speech is online here.
1.45pm GMT13:451.45pm GMT13:45
And that’s it! Draghi isn’t taking any questions, much to my dismay.And that’s it! Draghi isn’t taking any questions, much to my dismay.
And the speech didn’t contain anything to get the markets moving - no hints about future stimulus measures.And the speech didn’t contain anything to get the markets moving - no hints about future stimulus measures.
whaT. zero zip nada hint from #Draghi regarding expand/extend QE or possible cut in deposit rate @CNBCwhaT. zero zip nada hint from #Draghi regarding expand/extend QE or possible cut in deposit rate @CNBC
Latest bit of commentary from Draghi & co is a bit...boring. Nothing too revealing or interesting yet re: December policy action. $EURUSDLatest bit of commentary from Draghi & co is a bit...boring. Nothing too revealing or interesting yet re: December policy action. $EURUSD
1.43pm GMT13:431.43pm GMT13:43
The eurozone does already have some banking union, with the ECB responsible for banking supervisions.The eurozone does already have some banking union, with the ECB responsible for banking supervisions.
But it doesn’t yet have a uniform deposit insurance scheme. This is still controlled by national governments.But it doesn’t yet have a uniform deposit insurance scheme. This is still controlled by national governments.
Mario Draghi’s message is that politicians need to pool more sovereignty, to ensure their financial markets work better:Mario Draghi’s message is that politicians need to pool more sovereignty, to ensure their financial markets work better:
Draghi: In Europe national policymakers cannot fully protect citizens without pooling more sovereignty #BoEOpenForumDraghi: In Europe national policymakers cannot fully protect citizens without pooling more sovereignty #BoEOpenForum
Draghi: ECB banking supervision benefits citizens, member countries and the single market #BoEOpenForumDraghi: ECB banking supervision benefits citizens, member countries and the single market #BoEOpenForum
Updated at 1.43pm GMTUpdated at 1.43pm GMT
1.38pm GMT13:381.38pm GMT13:38
Draghi: Eurozone needs proper banking union, ASAPDraghi: Eurozone needs proper banking union, ASAP
OK we’ve got to the meat of the speech.OK we’ve got to the meat of the speech.
Mario Draghi is urging eurozone leaders to crack on and actually implement a full banking union across the eurozone, including a single deposit insurance scheme to protect savers when their bank fails.Mario Draghi is urging eurozone leaders to crack on and actually implement a full banking union across the eurozone, including a single deposit insurance scheme to protect savers when their bank fails.
The ECB president says:The ECB president says:
With a single currency the benefits of a single market are commensurately higher. But the costs of the market fragmenting are commensurately higher, too. For countries that share a single currency and a single market, therefore, the case is clear – I would say almost undeniable – for stronger common governance and deeper institutional integration.With a single currency the benefits of a single market are commensurately higher. But the costs of the market fragmenting are commensurately higher, too. For countries that share a single currency and a single market, therefore, the case is clear – I would say almost undeniable – for stronger common governance and deeper institutional integration.
Today, that means as a priority completing banking union: a fully-equipped single resolution mechanism and a uniform deposit insurance scheme.Today, that means as a priority completing banking union: a fully-equipped single resolution mechanism and a uniform deposit insurance scheme.
That would mean that money was equally seen as safe wherever it was saved in the eurozone, to stop panic spreading .That would mean that money was equally seen as safe wherever it was saved in the eurozone, to stop panic spreading .
This is a controversial issue in the eurozone -- German taxpayers may be worried about potentially compensating Greek savers.This is a controversial issue in the eurozone -- German taxpayers may be worried about potentially compensating Greek savers.
But Draghi is clear - it’s simply too risky to not have such guarantees in place when the next crisis arrives.But Draghi is clear - it’s simply too risky to not have such guarantees in place when the next crisis arrives.
Draghi: To reap benefits of open and free markets appropriate governance is necessary #BoEOpenForumDraghi: To reap benefits of open and free markets appropriate governance is necessary #BoEOpenForum
Draghi’s conclusion --all markets need proper governance to be truly free, especially in a single currency union:Draghi’s conclusion --all markets need proper governance to be truly free, especially in a single currency union:
Those countries have entered into an irrevocable union, built on the fertile ground of Europe’s common values and history, but also on deep mutual vulnerability. For those countries it is even more important to complete economic and monetary union in all its aspects.Those countries have entered into an irrevocable union, built on the fertile ground of Europe’s common values and history, but also on deep mutual vulnerability. For those countries it is even more important to complete economic and monetary union in all its aspects.
Updated at 2.00pm GMTUpdated at 2.00pm GMT
1.32pm GMT13:321.32pm GMT13:32
Draghi adds that attempts to clean up the asset-backed securities market after the 2008 crash also caused problems:Draghi adds that attempts to clean up the asset-backed securities market after the 2008 crash also caused problems:
There was “too much opacity” about what had been bundled into those products, a damaging breakdown of confidence in the integrity of those who packaged and sold them.There was “too much opacity” about what had been bundled into those products, a damaging breakdown of confidence in the integrity of those who packaged and sold them.
And the immediate temptation of regulators was to impose punishing capital charges on holdings of asset-backed securities, independent of their individual characteristics, mixing the wheat with the chaff.And the immediate temptation of regulators was to impose punishing capital charges on holdings of asset-backed securities, independent of their individual characteristics, mixing the wheat with the chaff.
1.28pm GMT13:281.28pm GMT13:28
A proper market must offer the freedom to take part, and also protection to ensure that freedom isn’t lost, Draghi continues.A proper market must offer the freedom to take part, and also protection to ensure that freedom isn’t lost, Draghi continues.
There must be fair competition, respect for property rights... in short, the Rule of Law.There must be fair competition, respect for property rights... in short, the Rule of Law.
If that doesn’t happen, then people lose confidence and the whole system becomes destabilised.If that doesn’t happen, then people lose confidence and the whole system becomes destabilised.
Fair enough! But we’ve seen an example recently when this simply failed, causing major panic.Fair enough! But we’ve seen an example recently when this simply failed, causing major panic.
Draghi explains:Draghi explains:
During the crisis, the market for securitised assets was all but destroyed by a collapse of confidence. Lack of oversight allowed excesses to be committed and market abuse to take place. Securities that were previously deemed safe, certainly with some measure of complacency and too much blind confidence, turned out to be very unsafe indeed, and imparted significant losses on their holders.During the crisis, the market for securitised assets was all but destroyed by a collapse of confidence. Lack of oversight allowed excesses to be committed and market abuse to take place. Securities that were previously deemed safe, certainly with some measure of complacency and too much blind confidence, turned out to be very unsafe indeed, and imparted significant losses on their holders.
Updated at 1.29pm GMTUpdated at 1.29pm GMT
1.24pm GMT13:241.24pm GMT13:24
Global trade is more important and intertwined than ever, Draghi says, with technology means distance between buyers and sellers is no longer as important.Global trade is more important and intertwined than ever, Draghi says, with technology means distance between buyers and sellers is no longer as important.
Global markets are also more closely linked, with the cost of moving capital between borders now almost zero.Global markets are also more closely linked, with the cost of moving capital between borders now almost zero.
1.22pm GMT13:221.22pm GMT13:22
Draghi begins by saying that markets can be defined by the instruments traded on them - oil, gold, etc - but they’re also defined by the people who use them.Draghi begins by saying that markets can be defined by the instruments traded on them - oil, gold, etc - but they’re also defined by the people who use them.
And you need appropriate governance to prevent misconduct - especially when markets cross borders.And you need appropriate governance to prevent misconduct - especially when markets cross borders.
1.20pm GMT13:201.20pm GMT13:20
Mario Draghi speaks in LondonMario Draghi speaks in London
Lunch is over at the Guildhall, and Mario Draghi is taking the stage at the Bank of England’s Open Forum.Lunch is over at the Guildhall, and Mario Draghi is taking the stage at the Bank of England’s Open Forum.
He’ll be speaking for 45 minutes on the financial markets.He’ll be speaking for 45 minutes on the financial markets.
Andy Haldane, the Bank’s chief economist, is introducing him. He reminds us that Draghi pledged 3 years ago in London to do “whatever it takes” to protect the euro.Andy Haldane, the Bank’s chief economist, is introducing him. He reminds us that Draghi pledged 3 years ago in London to do “whatever it takes” to protect the euro.
Those ‘magic three little words’ helped to calm the eurozone crisis, and put the global economy on a more even keel.Those ‘magic three little words’ helped to calm the eurozone crisis, and put the global economy on a more even keel.
We all have a lot to be thankful for to Mario, Haldane says.We all have a lot to be thankful for to Mario, Haldane says.
You can watch the session here.You can watch the session here.
Updated at 1.50pm GMTUpdated at 1.50pm GMT
1.15pm GMT13:151.15pm GMT13:15
In other news, the car emissions scandal appears to be spreading beyond Volkswagen.In other news, the car emissions scandal appears to be spreading beyond Volkswagen.
German regulators have announced they will test 50 models from 23 different brands, issued by German and foreign car companies, to see if they also breach nitrogen oxides emissions levels.German regulators have announced they will test 50 models from 23 different brands, issued by German and foreign car companies, to see if they also breach nitrogen oxides emissions levels.
According to Reuters, the list includes models from BMW, Daimler, Fiat Chrysler, Peugeot and Toyota.According to Reuters, the list includes models from BMW, Daimler, Fiat Chrysler, Peugeot and Toyota.
German motor vehicle watchdog widens diesel probe to 23 brands: FRANKFURT (Reuters) - Germany's ... https://t.co/R1wwqunPNg ... #businessGerman motor vehicle watchdog widens diesel probe to 23 brands: FRANKFURT (Reuters) - Germany's ... https://t.co/R1wwqunPNg ... #business
We’ll have more details online shortly.We’ll have more details online shortly.
Updated at 1.16pm GMTUpdated at 1.16pm GMT
12.41pm GMT12:4112.41pm GMT12:41
In 30 minutes time, Mario Draghi will give his views on financial markets to Forum attendees - who are currently knocking back some lunch.In 30 minutes time, Mario Draghi will give his views on financial markets to Forum attendees - who are currently knocking back some lunch.
The ECB president seems to be enjoying his visit:The ECB president seems to be enjoying his visit:
12.40pm GMT12:4012.40pm GMT12:40
Andrew Bailey, the Bank’s deputy governor for Prudential Regulation, has spoken about the challenges in running a 21st century bank:Andrew Bailey, the Bank’s deputy governor for Prudential Regulation, has spoken about the challenges in running a 21st century bank:
BoE's Bailey makes a great point: To mitigate terrorism risks as a bank, you make sure you can move services across locations seamlessly.BoE's Bailey makes a great point: To mitigate terrorism risks as a bank, you make sure you can move services across locations seamlessly.
But to mitigate cyber attack risks, you want to do the opposite, as you want to limit ways people can access your system. Big tension.But to mitigate cyber attack risks, you want to do the opposite, as you want to limit ways people can access your system. Big tension.
Updated at 1.00pm GMTUpdated at 1.00pm GMT
12.34pm GMT12:3412.34pm GMT12:34
A km worth of legal docs required for review and action on new regulation... #BoEOpenForum pic.twitter.com/9mAXynTrUzA km worth of legal docs required for review and action on new regulation... #BoEOpenForum pic.twitter.com/9mAXynTrUz
Hard to believe that anyone has actually read so many pages, let alone implemented it properly....Hard to believe that anyone has actually read so many pages, let alone implemented it properly....
12.26pm GMT12:2612.26pm GMT12:26
From the Open Forum, lawyer Robin Henry confirms that the public are more sceptical about the state of Britain’s financial sector than the people regulating it:From the Open Forum, lawyer Robin Henry confirms that the public are more sceptical about the state of Britain’s financial sector than the people regulating it:
Clear from comments that regulators' rosy view of reforms is not shared at all by the public #BoEOpenForumClear from comments that regulators' rosy view of reforms is not shared at all by the public #BoEOpenForum
Many comments on the need to move away from top down regulation of the financial markets #BoEOpenForumMany comments on the need to move away from top down regulation of the financial markets #BoEOpenForum
12.17pm GMT12:1712.17pm GMT12:17
Is it time to stop raking over off the mistakes that helped to cause the financial crisis?Is it time to stop raking over off the mistakes that helped to cause the financial crisis?
Tracy McDermott, who runs the UK’s financial watchdog (the FCA) suggests it might be:Tracy McDermott, who runs the UK’s financial watchdog (the FCA) suggests it might be:
McDermott is asked at #BoEOpenForum if the FCA is going soft on banks. She says its time to start looking at the futureMcDermott is asked at #BoEOpenForum if the FCA is going soft on banks. She says its time to start looking at the future
The FCA was set up after the crisis; it’s imposed chunky fines for various offences in recent years, including rigging the foreign exchange rates.The FCA was set up after the crisis; it’s imposed chunky fines for various offences in recent years, including rigging the foreign exchange rates.
11.57am GMT11:5711.57am GMT11:57
The Bank of England is also conducting opinion polls; they’ve showed that people don’t believe the financial system is working well enough:The Bank of England is also conducting opinion polls; they’ve showed that people don’t believe the financial system is working well enough:
Clear answer to Question 1 posed on #SME finance at #BoEOpenForum - Not enough being done to improve credit access pic.twitter.com/jA9KhBT1HmClear answer to Question 1 posed on #SME finance at #BoEOpenForum - Not enough being done to improve credit access pic.twitter.com/jA9KhBT1Hm
80% participants say UK economy too dependent on bank debt - Live questions at #BoEOpenForum breakout session. pic.twitter.com/y5HLVnFCbt80% participants say UK economy too dependent on bank debt - Live questions at #BoEOpenForum breakout session. pic.twitter.com/y5HLVnFCbt
Updated at 12.09pm GMTUpdated at 12.09pm GMT
11.56am GMT11:5611.56am GMT11:56
One problem with playing host to the world’s biggest banks is that they often collect the world’s biggest fines:One problem with playing host to the world’s biggest banks is that they often collect the world’s biggest fines:
#BoEOpenForum. Four uk banks in top 10 of world's most fined. So proud. pic.twitter.com/FPsS9eoXg1#BoEOpenForum. Four uk banks in top 10 of world's most fined. So proud. pic.twitter.com/FPsS9eoXg1
#BoEOpenForum just heard "here's a list of bank fines....we can be proud we have 4 banks in the top 8".... Everybody starts laughing ?!?!?#BoEOpenForum just heard "here's a list of bank fines....we can be proud we have 4 banks in the top 8".... Everybody starts laughing ?!?!?
11.46am GMT11:4611.46am GMT11:46
One attendee has already warned that innovation can’t be chained down:One attendee has already warned that innovation can’t be chained down:
Provocation from the audience at #BoEOpenForum 'rules don't work - I'm an innovator and will work around them'Provocation from the audience at #BoEOpenForum 'rules don't work - I'm an innovator and will work around them'
11.45am GMT11:4511.45am GMT11:45
Financial economist Jonathan Algar puts his finger on the problem with ‘professionalising’ the City:Financial economist Jonathan Algar puts his finger on the problem with ‘professionalising’ the City:
Term "banker" been used generically at #BoEOpenForum. BoE aspire to make it a profession. Problem: in reality, not a job with a standard..Term "banker" been used generically at #BoEOpenForum. BoE aspire to make it a profession. Problem: in reality, not a job with a standard..
..set of skills. Even within cap mkts banking, syndication & origination totally diff skills, cultures. Then there’s structures, quants,....set of skills. Even within cap mkts banking, syndication & origination totally diff skills, cultures. Then there’s structures, quants,..
Updated at 12.06pm GMTUpdated at 12.06pm GMT
11.43am GMT11:4311.43am GMT11:43
Various breakout sessions are now taking place at the BoE’s event:Various breakout sessions are now taking place at the BoE’s event:
Jill Treanor is tweeting the key points from the Guildhall:Jill Treanor is tweeting the key points from the Guildhall:
Acting FCA Tracey McDermott at #BoEOpenForum says traders were "operating in a little bubble where [they thought] rules didn't apply"Acting FCA Tracey McDermott at #BoEOpenForum says traders were "operating in a little bubble where [they thought] rules didn't apply"
RBS chairman Sir Howard Davies tells #BoEOpenForum the bank is trying to again public approval by rooting the bank to customer needsRBS chairman Sir Howard Davies tells #BoEOpenForum the bank is trying to again public approval by rooting the bank to customer needs
(that should be ‘regain public approval’ - silly autocorrect)(that should be ‘regain public approval’ - silly autocorrect)
Updated at 12.07pm GMTUpdated at 12.07pm GMT
11.23am GMT11:2311.23am GMT11:23
I missed this, unfortunately, but it’s a key issue:I missed this, unfortunately, but it’s a key issue:
'Laughs' at my question at #BoEOpenForum - do we want the biggest banks the the world? I don't think it's that funny....'Laughs' at my question at #BoEOpenForum - do we want the biggest banks the the world? I don't think it's that funny....
Osborne was clear this morning that despite the crisis of 2008 and its aftermath, Britain is still aiming to be a world-leader in finance, based around the City.Osborne was clear this morning that despite the crisis of 2008 and its aftermath, Britain is still aiming to be a world-leader in finance, based around the City.
The aim is to make the market function fairly, and much better than before, but that hasn’t been tested yet....The aim is to make the market function fairly, and much better than before, but that hasn’t been tested yet....
Fran Boait is executive director of Positive Money, which is “a movement to democratise money and banking so that it works for society and not against it”.Fran Boait is executive director of Positive Money, which is “a movement to democratise money and banking so that it works for society and not against it”.
Updated at 11.39am GMTUpdated at 11.39am GMT
11.14am GMT11:1411.14am GMT11:14
The thorny issue of the huge pay packets handed out in the City has finally reared up at the Guildhall.The thorny issue of the huge pay packets handed out in the City has finally reared up at the Guildhall.
The public believe it is a crucial cause of the crisis - so will it be fixed?The public believe it is a crucial cause of the crisis - so will it be fixed?
David Kynaston, visiting professor at Kingston University, argues that City remuneration must be tackled.David Kynaston, visiting professor at Kingston University, argues that City remuneration must be tackled.
He tells the Open Forum that:He tells the Open Forum that:
If the City and the financial markers are serious about achieving a genuine social licence, real action needs to be taken on pay because it remains a grotesque disparity.If the City and the financial markers are serious about achieving a genuine social licence, real action needs to be taken on pay because it remains a grotesque disparity.
Rabbi Baroness Julia Neuberger agrees, warning that badly-structured packets create an incentive to trade that isn’t in the interests of the market, but is in the interest of the individual.Rabbi Baroness Julia Neuberger agrees, warning that badly-structured packets create an incentive to trade that isn’t in the interests of the market, but is in the interest of the individual.
[This argument is often made by supports of a Tobin Tax, or Robin Hood tax][This argument is often made by supports of a Tobin Tax, or Robin Hood tax]
Helena Morrissey, CEO of Newton Investment Management, argues that there needs to be more “symmetry” among pay -- if traders get a chunk upside for doing well, there should be more downside when it goes wrong.Helena Morrissey, CEO of Newton Investment Management, argues that there needs to be more “symmetry” among pay -- if traders get a chunk upside for doing well, there should be more downside when it goes wrong.
[new rules allowing bonuses to be clawed back years after they were granted go some way to addressing this][new rules allowing bonuses to be clawed back years after they were granted go some way to addressing this]
And Jim O’Neill points out that Goldman Sachs was a partnership for some of the time he worked there - so individual’s capital was on the line. (that ended when Goldman floated in 1999).And Jim O’Neill points out that Goldman Sachs was a partnership for some of the time he worked there - so individual’s capital was on the line. (that ended when Goldman floated in 1999).
That could be a better model for some parts of the City, but probably not for client-facing roles, he concludes.That could be a better model for some parts of the City, but probably not for client-facing roles, he concludes.
Updated at 11.15am GMTUpdated at 11.15am GMT
10.59am GMT10:5910.59am GMT10:59
Jim O’Neill has warned the audience that there will be new financial crisis sooner or later.Jim O’Neill has warned the audience that there will be new financial crisis sooner or later.
But if we have more diverse companies operating in the sector, the damage might be less.But if we have more diverse companies operating in the sector, the damage might be less.
A financial crisis will happen again says Lord Jim O'Neill at #BoEOpenForum More diversity needed, the Treasury minister saysA financial crisis will happen again says Lord Jim O'Neill at #BoEOpenForum More diversity needed, the Treasury minister says
10.56am GMT10:5610.56am GMT10:56
There is a bit of a theme developing, about conflict between desire for safety and need for risk-taking to support growth #BoEOpenForumThere is a bit of a theme developing, about conflict between desire for safety and need for risk-taking to support growth #BoEOpenForum
10.51am GMT10:5110.51am GMT10:51
This is crying out for a caption competition.....This is crying out for a caption competition.....
10.50am GMT10:5010.50am GMT10:50
It’s a similar message in London:It’s a similar message in London:
Who feels "it's job done" in terms of regulatory changes, the room at #BoEOpenForum is asked? two or three hands go up..Who feels "it's job done" in terms of regulatory changes, the room at #BoEOpenForum is asked? two or three hands go up..
10.49am GMT10:4910.49am GMT10:49
There’s not much confidence in Birmingham that the financial markets are fixed.There’s not much confidence in Birmingham that the financial markets are fixed.
The Bank of England has set up a smaller forum in Britain’s second city, to shadow events in London.The Bank of England has set up a smaller forum in Britain’s second city, to shadow events in London.
Attendees were asked “do you think Financial Markets had a key role creating the financial crisis and the recession that we experienced in the UK?”. Virtually everyone raised their hands:Attendees were asked “do you think Financial Markets had a key role creating the financial crisis and the recession that we experienced in the UK?”. Virtually everyone raised their hands:
And second, “are you now confident that financial markets are operating in an ethical way that would prevent such a crisis and a recession hitting us again?”And second, “are you now confident that financial markets are operating in an ethical way that would prevent such a crisis and a recession hitting us again?”
Cue much sitting on hands.....Cue much sitting on hands.....
10.39am GMT10:3910.39am GMT10:39
Treasury minister Jim O’Neill, a former top executive at Goldman Sachs, cautions against thinking that the financial crisis can be easily ‘solved’Treasury minister Jim O’Neill, a former top executive at Goldman Sachs, cautions against thinking that the financial crisis can be easily ‘solved’
It’s right that we’re trying to explore why the hell it was so bad...but we have to also acknowledge that we might not fully know.It’s right that we’re trying to explore why the hell it was so bad...but we have to also acknowledge that we might not fully know.
It’s dangerous to think we’ll find some magical solution to protect us for decades ahead.It’s dangerous to think we’ll find some magical solution to protect us for decades ahead.
10.36am GMT10:3610.36am GMT10:36
A panel discussions is now underway now in the Guildhall.A panel discussions is now underway now in the Guildhall.
Rabbi Baroness Neuberger is taking a historical view, saying bankers have been criticised for several generations - and they’re always relieved when another industry is hit by scandal (such as Volkswagen’s emissions scandal or the oil spill in the Gulf of Mexico).Rabbi Baroness Neuberger is taking a historical view, saying bankers have been criticised for several generations - and they’re always relieved when another industry is hit by scandal (such as Volkswagen’s emissions scandal or the oil spill in the Gulf of Mexico).
Julia Neuberger tells #BoEOpenForum that bankers were relieved by the VW and BP oil spill disasterJulia Neuberger tells #BoEOpenForum that bankers were relieved by the VW and BP oil spill disaster
Baroness Neuberger also argues that a banking code of conduct won’t push up standards on its own.Baroness Neuberger also argues that a banking code of conduct won’t push up standards on its own.
It takes outsiders to show when something is being done wrong, even if professionals are following the code.It takes outsiders to show when something is being done wrong, even if professionals are following the code.
Updated at 11.24am GMTUpdated at 11.24am GMT
10.31am GMT10:3110.31am GMT10:31
While Osborne was speaking, new data showed that Britain’s unemployment rate has hit a new seven-year low of just 5.3%.While Osborne was speaking, new data showed that Britain’s unemployment rate has hit a new seven-year low of just 5.3%.
But it’s not all good news - wage growth was weaker than expected. Average earnings rose by 3% annually in the last quarter, but only 2% in September alone.But it’s not all good news - wage growth was weaker than expected. Average earnings rose by 3% annually in the last quarter, but only 2% in September alone.
Touching distance. UK unemployment falls to 5.3%, a whisker away from 2000-07 average of 5.1%. pic.twitter.com/goiGmZrXW2Touching distance. UK unemployment falls to 5.3%, a whisker away from 2000-07 average of 5.1%. pic.twitter.com/goiGmZrXW2
#Employment rate 73.7% for Jul-Sep 2015, highest since records began in 1971 https://t.co/Cx4CoquCVb pic.twitter.com/pW6dHUMoYK#Employment rate 73.7% for Jul-Sep 2015, highest since records began in 1971 https://t.co/Cx4CoquCVb pic.twitter.com/pW6dHUMoYK
For Jul-Sep 2015 wages up 3.0% on a year earlier including bonuses, & 2.5% excluding bonuses https://t.co/ujz2apLFKh pic.twitter.com/C8pmI6prQ6For Jul-Sep 2015 wages up 3.0% on a year earlier including bonuses, & 2.5% excluding bonuses https://t.co/ujz2apLFKh pic.twitter.com/C8pmI6prQ6
10.11am GMT10:1110.11am GMT10:11
10.06am GMT10:0610.06am GMT10:06
Osborne: Public are right to be angry over banking crashOsborne: Public are right to be angry over banking crash
Does George Osborne understand why the public are still so angry about the crisis, and believe that the people responsible never paid a penalty?Does George Osborne understand why the public are still so angry about the crisis, and believe that the people responsible never paid a penalty?
He says he does, telling the Bank of England’s Open Forum that it’s perfectly understandable.... and he shares some of this frustration and anger.He says he does, telling the Bank of England’s Open Forum that it’s perfectly understandable.... and he shares some of this frustration and anger.
We were told that the City was well regulated, and people were paid high salaries because they ran big risks and would lose their jobs if things went wrong.We were told that the City was well regulated, and people were paid high salaries because they ran big risks and would lose their jobs if things went wrong.
Then along comes a big banking crash, and it turns out that the person standing behind the bank is the taxpayer.Then along comes a big banking crash, and it turns out that the person standing behind the bank is the taxpayer.
If you go and shoplift at the local WH Smiths you go to prison, but if you’re the market trader on the trading floor of a big investment bank and you rip off people to the tune of millions of pounds, there are no criminal offences available to deal with you.If you go and shoplift at the local WH Smiths you go to prison, but if you’re the market trader on the trading floor of a big investment bank and you rip off people to the tune of millions of pounds, there are no criminal offences available to deal with you.
There was a lot of totally understandable anger.There was a lot of totally understandable anger.
The chancellor also says it’s “a bit optimistic” for bankers to ask him when we can move on from the crisis.The chancellor also says it’s “a bit optimistic” for bankers to ask him when we can move on from the crisis.
This was the biggest single economic crash of our lifetimes.This was the biggest single economic crash of our lifetimes.
This was a financial crisis probably larger than anything experienced since the Victorian age in our country, and an economic crash and a recession as great as anything since the 1930s.This was a financial crisis probably larger than anything experienced since the Victorian age in our country, and an economic crash and a recession as great as anything since the 1930s.
The industry, regulators and politicians must prove that the banking sector has cleaned up its game.The industry, regulators and politicians must prove that the banking sector has cleaned up its game.
And that’s the end of his session.And that’s the end of his session.
Updated at 10.27am GMTUpdated at 10.27am GMT
9.52am GMT09:529.52am GMT09:52
A questioner from the floor challenges Osborne on that last point.A questioner from the floor challenges Osborne on that last point.
She points out that big fines are paid by shareholders, not the staff responsible. And the 2008 bailouts were paid by the taxpayer, not the bankers who led their firms to the cliffedge.She points out that big fines are paid by shareholders, not the staff responsible. And the 2008 bailouts were paid by the taxpayer, not the bankers who led their firms to the cliffedge.
Surely we need more accountability?Surely we need more accountability?
Osborne says the government has created new criminal offences to cover benchmark manipulation. And individual bankers who cause their banks to fail would face seven years in prison.Osborne says the government has created new criminal offences to cover benchmark manipulation. And individual bankers who cause their banks to fail would face seven years in prison.
When I got into office [after the 2010 general election] and found out about the scandal, I changed the law.When I got into office [after the 2010 general election] and found out about the scandal, I changed the law.
Updated at 10.08am GMTUpdated at 10.08am GMT
9.49am GMT09:499.49am GMT09:49
Onto questions: Would a bankers code of conduct help to restore financial trust?Onto questions: Would a bankers code of conduct help to restore financial trust?
Osborne says that Banking, like the medical profession, engineering, architecture, has a proud history. The best practitioners want to enhance that status, and regulated by the industry itself as well as the government.Osborne says that Banking, like the medical profession, engineering, architecture, has a proud history. The best practitioners want to enhance that status, and regulated by the industry itself as well as the government.
The Banking Standards Board is doing good work getting codes of conduct up to date, improving exams, to reflect the ethical standards need.The Banking Standards Board is doing good work getting codes of conduct up to date, improving exams, to reflect the ethical standards need.
But he then argues that monetary penalties should keep bankers in line.But he then argues that monetary penalties should keep bankers in line.
If anyone thinks being unethical in the financial services industry is a good way to make money, I’d suggest they take a look at the very, very large fines that a number of institutions have had to pay.....and ask whether it was worth it.If anyone thinks being unethical in the financial services industry is a good way to make money, I’d suggest they take a look at the very, very large fines that a number of institutions have had to pay.....and ask whether it was worth it.
Management and shareholders must take the lead, to ensure that staff don’t make an extra buck on the trading floor that leads to a massive penalty for the firm, Osborne concludes.Management and shareholders must take the lead, to ensure that staff don’t make an extra buck on the trading floor that leads to a massive penalty for the firm, Osborne concludes.
9.42am GMT09:429.42am GMT09:42
George Osborne also congratulated the Bank for running a webinar for school children this week, and admitted it was a new term to him.George Osborne also congratulated the Bank for running a webinar for school children this week, and admitted it was a new term to him.
Osborne #BoEOpenForum didn't know the word "webinar" - good example of top politicians' isolated; no wonder their actions often out of touchOsborne #BoEOpenForum didn't know the word "webinar" - good example of top politicians' isolated; no wonder their actions often out of touch
At least he’s not the technology minister....At least he’s not the technology minister....
9.41am GMT09:419.41am GMT09:41
Osborne: No repeat of the RBS fiascoOsborne: No repeat of the RBS fiasco
George Osborne says that his predecessor, Alastair Darling, had very few options when Royal Bank of Scotland hit the rocks in 2008.George Osborne says that his predecessor, Alastair Darling, had very few options when Royal Bank of Scotland hit the rocks in 2008.
He didn’t have legal powers to intervene, he was worried if the cash machines would keep running, he was worried about how the the retail bank would cope if the investment bank failed.He didn’t have legal powers to intervene, he was worried if the cash machines would keep running, he was worried about how the the retail bank would cope if the investment bank failed.
So in the end, Darling had little option but to launch a huge bailout.So in the end, Darling had little option but to launch a huge bailout.
It’s vital that the chancellor has many more options the next time this happens, says Osborne. New rules on ring-fencing, capital reserves and bail-in regulations will all help.It’s vital that the chancellor has many more options the next time this happens, says Osborne. New rules on ring-fencing, capital reserves and bail-in regulations will all help.
9.37am GMT09:379.37am GMT09:37
Osborne says 'the uk wants to have the biggest banks in the world' - do we? Not everyone does #BoEOpenForumOsborne says 'the uk wants to have the biggest banks in the world' - do we? Not everyone does #BoEOpenForum
9.33am GMT09:339.33am GMT09:33
Osborne: We want City to innovate, and be safeOsborne: We want City to innovate, and be safe
Chancellor George Osborne is now speaking, discussing the financial crisis, its aftermath, and the ‘dilemma’ created when you try to run successful markets.Chancellor George Osborne is now speaking, discussing the financial crisis, its aftermath, and the ‘dilemma’ created when you try to run successful markets.
He explains that Guildhall was once the place where people turned up to pay their taxes, so the attendees are all ‘very welcome’.He explains that Guildhall was once the place where people turned up to pay their taxes, so the attendees are all ‘very welcome’.
(don’t worry, Osborne’s too busy worrying about tax credits to announce any new taxes today)(don’t worry, Osborne’s too busy worrying about tax credits to announce any new taxes today)
Osborne tells the audience that holidaymakers and businesses lost out because City insiders rigged the benchmarks for foreign exchange rates and derivatives.Osborne tells the audience that holidaymakers and businesses lost out because City insiders rigged the benchmarks for foreign exchange rates and derivatives.
We want financial firms to innovate, create jobs, fund business.We want financial firms to innovate, create jobs, fund business.
We want to be the home of the world’s biggest banks. But we also want them to be safe.We want to be the home of the world’s biggest banks. But we also want them to be safe.
Osborne "dilemma between risk and safety for financial markets" #BoEOpenForumOsborne "dilemma between risk and safety for financial markets" #BoEOpenForum
9.31am GMT09:319.31am GMT09:31
Carney "don't just want to end boom and bust cycle but also regulatory reform and complacency cycle" #BoEOpenForumCarney "don't just want to end boom and bust cycle but also regulatory reform and complacency cycle" #BoEOpenForum
9.26am GMT09:269.26am GMT09:26
A date for the diary:A date for the diary:
"5 years from now, UK financial services will be the best regulated in the world" - Mark Carney at #BoEOpenForum"5 years from now, UK financial services will be the best regulated in the world" - Mark Carney at #BoEOpenForum
9.25am GMT09:259.25am GMT09:25
Anyone hoping for a smaller City will be disappointed, though.Anyone hoping for a smaller City will be disappointed, though.
Carney argues that, done right, Britain’s financial sector could be bigger than ever in the decades ahead.Carney argues that, done right, Britain’s financial sector could be bigger than ever in the decades ahead.
Financial sector 'could increase from six to nearly 15 times UK GDP by 2050', Carney says. City going to be bigger than ever ....Financial sector 'could increase from six to nearly 15 times UK GDP by 2050', Carney says. City going to be bigger than ever ....
9.22am GMT09:229.22am GMT09:22
We have also reformed financial benchmarks to end ‘ethical drift’, Carney adds.We have also reformed financial benchmarks to end ‘ethical drift’, Carney adds.
9.19am GMT09:199.19am GMT09:19
Mark Carney explains that new rules on loss-absorbing capital mean that banks will no longer be ‘too big to fail.’Mark Carney explains that new rules on loss-absorbing capital mean that banks will no longer be ‘too big to fail.’
The era of ‘heads I win, tails you lose’ capitalism is drawing to a close.The era of ‘heads I win, tails you lose’ capitalism is drawing to a close.
(It’s been a long road - Lehman Brothers collapsed more than seven years ago, triggering a massive bailout programme to prevent the whole system imploding)(It’s been a long road - Lehman Brothers collapsed more than seven years ago, triggering a massive bailout programme to prevent the whole system imploding)
Updated at 9.22am GMTUpdated at 9.22am GMT
9.16am GMT09:169.16am GMT09:16
Carney: Markets must be fairCarney: Markets must be fair
Mark Carney is now speaking.Mark Carney is now speaking.
He’s explaining how it’s vital that financial markets work well, and are seen to work well.He’s explaining how it’s vital that financial markets work well, and are seen to work well.
They should be fair, with people competing on merit not colluding online (a nod to the various scandals that have rocked the City, such as Libor).They should be fair, with people competing on merit not colluding online (a nod to the various scandals that have rocked the City, such as Libor).
And the financial crisis has shown that the financial services sector failed to live up to these standards, says Carney, adding:And the financial crisis has shown that the financial services sector failed to live up to these standards, says Carney, adding:
So, it’s not surprising that only one third of people think financial markets work in the interest of society.So, it’s not surprising that only one third of people think financial markets work in the interest of society.
And that ratio actually falls among other people - experience of the financial markets leads to less confidence, not more....And that ratio actually falls among other people - experience of the financial markets leads to less confidence, not more....
9.10am GMT09:109.10am GMT09:10
London’s Lord Mayor is kicking the Open Forum off, telling the audience that every firm in the financial sector must be “fully engaged” in society, so they’re doing good for Britain.London’s Lord Mayor is kicking the Open Forum off, telling the audience that every firm in the financial sector must be “fully engaged” in society, so they’re doing good for Britain.
He then plugs his own City Giving Day, which pushes firms to volunteer and fundraise for good causes.He then plugs his own City Giving Day, which pushes firms to volunteer and fundraise for good causes.
9.06am GMT09:069.06am GMT09:06
Watch the BoE Open Forum hereWatch the BoE Open Forum here
The Bank of England’s Open Forum is starting now in the Guildhall, just across the road from its own building - you can watch it live here.The Bank of England’s Open Forum is starting now in the Guildhall, just across the road from its own building - you can watch it live here.
8.52am GMT08:528.52am GMT08:52
Banking still looks something like this, but it's changing, says Mark Carney. pic.twitter.com/3i8e5bAAR5Banking still looks something like this, but it's changing, says Mark Carney. pic.twitter.com/3i8e5bAAR5
8.49am GMT08:498.49am GMT08:49
And here’s the agenda of today’s Bank of England Open Forum, which kicks off in a few minutes.And here’s the agenda of today’s Bank of England Open Forum, which kicks off in a few minutes.
(The ‘senior Cabinet Minister’ is chancellor Osborne)(The ‘senior Cabinet Minister’ is chancellor Osborne)
There’s more detail on the Bank’s website.There’s more detail on the Bank’s website.
Updated at 8.50am GMTUpdated at 8.50am GMT
8.43am GMT08:438.43am GMT08:43
Today’s Open Forum is part of Carney’s drive to end the Age of Irresponsibility in the City.Today’s Open Forum is part of Carney’s drive to end the Age of Irresponsibility in the City.
Those attending will hear from the chancellor, George Osborne, as well as Carney, Draghi and many senior figures in the sector:Those attending will hear from the chancellor, George Osborne, as well as Carney, Draghi and many senior figures in the sector:
Here’s our preview:Here’s our preview:
The latest attempt by the government to rehabilitate the battered reputation of the City of London takes place on Wednesday when Mark Carney, the governor of the Bank of England, invites the public to have their say on the future of financial markets.The latest attempt by the government to rehabilitate the battered reputation of the City of London takes place on Wednesday when Mark Carney, the governor of the Bank of England, invites the public to have their say on the future of financial markets.
Carney has invited the chancellor, George Osborne, and the president of the European Central Bank, Mario Draghi, to be the guests of honour at a day-long event at the Guildhall in London.Carney has invited the chancellor, George Osborne, and the president of the European Central Bank, Mario Draghi, to be the guests of honour at a day-long event at the Guildhall in London.
Half the 400-strong audience will be made up of members of the public who were allocated their seats by ballot and will have the chance to sit alongside representatives of the banks blamed for crashing the economy and besmirching the reputation of the financial sector....Half the 400-strong audience will be made up of members of the public who were allocated their seats by ballot and will have the chance to sit alongside representatives of the banks blamed for crashing the economy and besmirching the reputation of the financial sector....
Related: Bank of England chief to host forum on how to make markets safeRelated: Bank of England chief to host forum on how to make markets safe
8.36am GMT08:368.36am GMT08:36
Mark Carney will soon find out whether the public respect bankers -- 200 people won tickets to today’s Open Forum in a ballot:Mark Carney will soon find out whether the public respect bankers -- 200 people won tickets to today’s Open Forum in a ballot:
The venue for today's #BoEOpenForum. Good that 200 members of the public will be there, not just bankers. @Peston pic.twitter.com/DkOXn6sVopThe venue for today's #BoEOpenForum. Good that 200 members of the public will be there, not just bankers. @Peston pic.twitter.com/DkOXn6sVop
8.27am GMT08:278.27am GMT08:27
The interview ends on a mildly comedy note, as Sky’s Eamonn Holmes asks Mark Carney how he copes with such Clooney-style good looks in the world of central banking.The interview ends on a mildly comedy note, as Sky’s Eamonn Holmes asks Mark Carney how he copes with such Clooney-style good looks in the world of central banking.
“It’s a very low bar”, Carney twinkles back.“It’s a very low bar”, Carney twinkles back.
Eamonn Holmes to Mark Carney on @Skynews: "You are the George Clooney of the banking world." Carney: "It's a very low bar."Eamonn Holmes to Mark Carney on @Skynews: "You are the George Clooney of the banking world." Carney: "It's a very low bar."
Hopefully that won’t upset Mario Draghi -- the dapper chief of the European Central Bank is speaking at lunchtime.Hopefully that won’t upset Mario Draghi -- the dapper chief of the European Central Bank is speaking at lunchtime.
India’s central bank chief also has his fans...India’s central bank chief also has his fans...
I think Raghuram Rajan is more attractive than Carney, but I'm in a small minority of financial journos.I think Raghuram Rajan is more attractive than Carney, but I'm in a small minority of financial journos.
8.14am GMT08:148.14am GMT08:14
Carney vows to root out 'bad apples'Carney vows to root out 'bad apples'
Mark Carney has also vowed to ‘root out’ the remaining ‘bad apples’ in the banking sector.Mark Carney has also vowed to ‘root out’ the remaining ‘bad apples’ in the banking sector.
He told Sky News that “the system is changing” so remaining bad apples in the barrel are held to account.He told Sky News that “the system is changing” so remaining bad apples in the barrel are held to account.
Like any profession, finance has a lot of talented people, working with integrity to do the right thing, Carney continues. It’s the UK’s largest exporter, contributing 8% of GDP.Like any profession, finance has a lot of talented people, working with integrity to do the right thing, Carney continues. It’s the UK’s largest exporter, contributing 8% of GDP.
We’ll still work and root out those bad apples, but we need to recognise there is a lot of good in financial services. It makes a huge contribution to our economy.We’ll still work and root out those bad apples, but we need to recognise there is a lot of good in financial services. It makes a huge contribution to our economy.
I might not be hugging any bankers, but increasingly the British people will be respecting them.I might not be hugging any bankers, but increasingly the British people will be respecting them.
Updated at 8.38am GMTUpdated at 8.38am GMT
8.03am GMT08:038.03am GMT08:03
Mark Carney: I won't hug any bankersMark Carney: I won't hug any bankers
The governor of the Bank of England governor has ruled out ‘hugging any bankers’, as he prepares to welcome the public to its first Open Forum in London.The governor of the Bank of England governor has ruled out ‘hugging any bankers’, as he prepares to welcome the public to its first Open Forum in London.
Interviewed on Sky News, Mark Carney said that Britain’s financial sector has fixed some of the problems that contributed to the last financial crisis.Interviewed on Sky News, Mark Carney said that Britain’s financial sector has fixed some of the problems that contributed to the last financial crisis.
Travelling around the UK, he’s seen that the public expect two things.Travelling around the UK, he’s seen that the public expect two things.
1) Banks should be allowed to go bust like any other business, rather than being bailed out because they’re ‘too big to fail’1) Banks should be allowed to go bust like any other business, rather than being bailed out because they’re ‘too big to fail’
2) Individual bankers should be held to account.2) Individual bankers should be held to account.
Carney insists that progress has been made:Carney insists that progress has been made:
“I think what’s happening now is that the bankers are starting to be part of the solution, not part of the problem.”“I think what’s happening now is that the bankers are starting to be part of the solution, not part of the problem.”
But any City workers hoping to be embraced by the dashing Bank boss will be disappointed.But any City workers hoping to be embraced by the dashing Bank boss will be disappointed.
Asked if he’ll ever hug a banker (an echo of David Cameron’s famous pledge to Hug a Hoodie in 2006), Carney replies:Asked if he’ll ever hug a banker (an echo of David Cameron’s famous pledge to Hug a Hoodie in 2006), Carney replies:
I won’t think you want your governor giving that kind of advice....Neither I nor my successors will be hugging any bankers.I won’t think you want your governor giving that kind of advice....Neither I nor my successors will be hugging any bankers.
But his goal is to reach the point where people respect bankers, and bankers can crack on with serving the public.But his goal is to reach the point where people respect bankers, and bankers can crack on with serving the public.
Head of @bankofengland, #MarkCarney, is convinced #bankers are now "part of the solution", not problem #BoEOpenForum https://t.co/dFCn7xNEMqHead of @bankofengland, #MarkCarney, is convinced #bankers are now "part of the solution", not problem #BoEOpenForum https://t.co/dFCn7xNEMq
More to follow....More to follow....
Updated at 8.05am GMTUpdated at 8.05am GMT
7.40am GMT07:407.40am GMT07:40
The Agenda: UK unemployment and Bank of England Open ForumThe Agenda: UK unemployment and Bank of England Open Forum
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
Today we’ll be looking at the UK economy, with the latest unemployment report released at 9.30am GMT.Today we’ll be looking at the UK economy, with the latest unemployment report released at 9.30am GMT.
It’s expected to show another steady pick-up in wages - average earnings could rise by over 3%, while the jobless rate may remain at just 5.4%. A strong report might raise the chances of an early interest rate rise, although policymakers did dampen expectations last week.It’s expected to show another steady pick-up in wages - average earnings could rise by over 3%, while the jobless rate may remain at just 5.4%. A strong report might raise the chances of an early interest rate rise, although policymakers did dampen expectations last week.
Michael Hewson of CMC Markets comments:Michael Hewson of CMC Markets comments:
A strong wages number will further reinforce the widening gap between wages and inflation and raise concerns that the Bank of England is not only behind the curve, but is on the way to being lapped.A strong wages number will further reinforce the widening gap between wages and inflation and raise concerns that the Bank of England is not only behind the curve, but is on the way to being lapped.
It’s a big day at the Bank of England too, as the UK central bank throws open its doors for its first ever Open Forum (well, the Guildhall’s doors, anyway)It’s a big day at the Bank of England too, as the UK central bank throws open its doors for its first ever Open Forum (well, the Guildhall’s doors, anyway)
Those lucky enough to get a ticket will hear from governor Mark Carney, and ECB chief Mario Draghi at 1.15pm. It kicks off at 9am:Those lucky enough to get a ticket will hear from governor Mark Carney, and ECB chief Mario Draghi at 1.15pm. It kicks off at 9am:
Excited about the #BoEOpenForum tomorrow? A huge variety of stakeholders will map a positive future for markets https://t.co/XqZxYRIHC7Excited about the #BoEOpenForum tomorrow? A huge variety of stakeholders will map a positive future for markets https://t.co/XqZxYRIHC7
BofE's Open Forum with 50% general public with a # for twitter questions. Blimey. Its modern for the old lady of thread needle st.BofE's Open Forum with 50% general public with a # for twitter questions. Blimey. Its modern for the old lady of thread needle st.
In the City, supermarket chain Sainsbury’s is reporting financial results. Sales and profits are down, as deflation continues to stalk the sector.In the City, supermarket chain Sainsbury’s is reporting financial results. Sales and profits are down, as deflation continues to stalk the sector.
Sainsbury's underlying pretax profit down 18% to £308m in first half, like-for-like sales down 1.6%Sainsbury's underlying pretax profit down 18% to £308m in first half, like-for-like sales down 1.6%
Sainsbury's says food sales down nearly 1% in first half but clothing up 10%Sainsbury's says food sales down nearly 1% in first half but clothing up 10%
While in Greece, talks will continue with creditors over the remaining milestones which Athens must hit before it can receive its next aid payment.While in Greece, talks will continue with creditors over the remaining milestones which Athens must hit before it can receive its next aid payment.
Fresh round of talks today in Athens btwn #Greece Mins & officials and Quadriga heads. Gaps hv narrowed but an agreemnt's still not in sightFresh round of talks today in Athens btwn #Greece Mins & officials and Quadriga heads. Gaps hv narrowed but an agreemnt's still not in sight
We’ll be tracking all the main events through the day...We’ll be tracking all the main events through the day...
Updated at 9.06am GMTUpdated at 9.06am GMT