It has been reported today by the BBC that the way banks were regulated needed to change in light of the failure of Northern Rock and other institutions.

The House of Lords Economic Affairs Committee said the so-called tripartite system had failed and must be reformed.

The report said the problem was that it was not clear who would be in charge in a crisis. It said the Bank of England should get a clear executive role.

What must be made clear is that until the credit crisis blossomed there was no questioning of the existent rules and regulations of conduct by banks.

In fact it was Gordon Brown who encouraged less regulation to enable the banking sector and financial institutions to make more money which ultimately contributed to the fiasco that we are currently in.

In the Capitalist mode of thinking rules and regulations are hindrances and obstacles in the way of the main goal of profit hence the super rich pay thousands of pounds to tax accountants to hide their earnings from the tax man.

Creating more stringent regulations of banking practices will never eradicate the philosophy of greed and profit from the minds of those who are part of the system and will ultimately continue the same practices and profit making tactics albeit with a new regulated face.

This comment is in response to the following news story

Bank regulation system ‘failed’