Bloomberg reports that Governor Mervyn King’s failure then to take greater responsibility for Libor now poses a new threat to London’s drive to rival New York in the battle for a larger share of a shrinking international financial industry.
'As a company, we now avoid London', said David Kotok, who manages about $2bn as Chief Investment Officer at Cumberland Advisors Inc. in Sarasota, Florida. 'It’s tarnished. Passing the buck to others, shirking responsibility and avoiding accountability characterizes the people at work there'.
Not only has the scandal dealt another blow to the self-regulatory model that was the hallmark of Britain’s longest stretch of growth for 200 years, it is throwing into question Prime Minister David Cameron’s plan to put the Bank of England in primary charge of banking regulation.
The financial-services industry faces 'a crisis of trust and reputation' after years of light-touch oversight created a culture of 'cynical greed' laid bare by the Libor crisis, Adair Turner, current chairman of the U.K. Financial Services Authority, said July 3rd.
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