Robert Peston, a BBC financial commentator says the semi-permanent nationalisation of the banking system, soon to be followed by significant taxpayer support for real companies in the real economy, means banks and private sector companies will have to work much harder to sustain the goodwill of those who are keeping them alive: taxpayers.

He says, “those running our biggest commercial businesses will have to be more visible. They’ll have to manifest a genuine understanding not only of the anxieties of their employees but of all taxpayers. Those CEOs who succeed will be those who imbue in their businesses very simple, commonsense standards of decency. And they’ll almost certainly be paid less for doing more, because the pricking of the debt bubble has undermined the institutions – the private-equity firms, hedge funds and investment banks – which were ratcheting up the pay of all business leaders.”

Peston warns the biggest lesson of all is we are a million miles from having created the political and regulatory institutions to help us contain the risks of globalisation. He says if the unfettered movement of capital, goods and services is going to survive, if there’s not going to be a retreat into national fortresses which could impoverish all of us over the longer term, we’ll have to find a far better way of monitoring global risks and of bringing Govts together to deal with these risks.

Tags: business, economy, Government, regulation

 Copyright © The Main Report Group