Labour just don´t get the banking crisis

It is fascinating to note how Labour just do not get the banking crisis.

This is all exemplified by an interview with John Redwood and Derek Draper, on the Nolan show. You can download the MP3 here, or read a partial transcript here, thanks to the University of Manchester Conservative Future, via Iain Dale´s Daily Dozen.

You see, in Draper world, and from having talked to real world New Labour supporters, New Labour world, this is a combination of American bankers, and greedy bankers here, and if there was any fault here, it was not enough regulation but Labour would have regulated more than any one else as everyone else wanted more regulation.

Well I have news for people who live in Draper world or indeed New Labour world, and it is this.

It does not matter how much regulation you have, if you are regulating the wrong things, with the wrong people who don´t know what they are looking at.

There is no sensible way that a regulator could decide what sort of mortgages a bank should offer to an individual. There is every way that a regulator could supervise a banks balance sheet and its spread of risk verses it capital and cash.

It is true that the Conservative party does want less regulation, in the sense of less looking at each individual deal. What we do want is to get a tighter control of the bigger picture. That is the way it used to be done, before Gordon Brown, and it is the way it will be done after him.