Robert Jenkins, Bank of England FPC
“The latest lobby tactic is to convince pundits, public and politicians that encouraging prudence too soon will hit the economy too hard. This is no longer amusing. This strategy is intellectually dishonest and potentially damaging,” said Robert Jenkins, member of the Bank of England’s Financial Policy Committee, in a speech in London on 22 November 2011.
Jenkins said scare tactics were shortsighted and would undermine confidence in the banking system and the economy. “The truth is that banks can strengthen their balance sheets without harming the economy. They can do so by cutting bonuses, by curtailing intra-financial risk-taking and by raising term debt and equity. The markets are not closed to viable banks,” he said.
“A profession which should stand for integrity and prudence now supports a lobbying strategy that exploits misunderstanding and fear,” he said.
