Proposals put forward by the chancellor of the exchequer to help the UK better deal with another incident like the implosion of Northern Rock look to be a knee-jerk reaction by politicians wishing to be seen doing something to solve a problem.
Although some proposals, such as increasing the proportion of deposits safeguarded by the deposit guarantee scheme, are useful, others, such as the creation of an emergency committee of the Bank of England, Financial Services Authority and the Treasury, to be led by the chancellor and touted as an equivalent of the government’s Cobra committee, which coordinates responses to civil emergencies, look like pointless duplication.
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