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Freedom from self-awareness

Governor of the Bank of England Andrew Bailey rejects the unsound decisions of the EU.

Bank of England Governor Andrew Bailey poses for a photograph on the first day of his new role at the Central Bank in London

On January 6, the governor of the Bank of England and the head of the Prudential Regulation Authority explained to the Treasury Select Committee of the UK parliament how London will prosper as a global financial centre by freeing itself from the EU’s dreadful regulatory red tape.

They reassured MPs that the UK will not be a rule taker. Oh no.

BofE governor Andrew Bailey said: “Can I give you an example, because it may help to illustrate this? There will be examples that the EU will come up with, but the EU has very recently adopted a rule that allows the value of a bank’s own capitalized software to count within its capital. That is against the Basel accord, and we are just not going to implement that rule, because it is unsound, I am afraid.

“Come the day when you need the free capital, and I emphasize the word ‘free’, I do not know how you think you get the value out of your software at that point. We are not going to do that. I am sure they will come up with something we have done that they will say does not make any sense.

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