Labour slams financial sector's resistance to regulation
MEP and vice-chair of the economic and monetary affairs committee Arlene McCarthy has accused the financial sector of not learning the lessons of the crisis and “kicking back” at regulation.
Speaking at a Smith Institute fringe event at the Labour autumn conference in Manchester last week, McCarthy warned that the industry could face more regulation in the face of repeated scandals.
She said: “When we had the BSE crisis, the food industry recognised we needed regulation. The problem with this industry for the large part is that it is still kicking back at regulation without coming forward with alternatives, better ways to do it or self-regulation.
“We had to deal with the 2008 financial crisis and then we had a Libor crisis four years later, so consumer groups and people tell me we need to regulate more because the industry is not learning the lessons from the crisis.”
McCarthy also defended EU regulation from industry criticism and called on the industry to support a financial transaction tax. She said: “Why are you against everything? Why not say, let’s have a financial transaction tax based on the model of UK stamp duty.”