16 October 2008
Chairman of Policy's statement on current turmoil
Stuart Fraser, Chairman of Policy & Resources Committee,
said: “All of us face a time of unprecedented global financial
turmoil.
While many things are unclear, it remains certain that the City
needs to stay in close dialogue with key politicians as the crisis
is dealt with.
It is not the City of London Corporation’s job to comment on the
equity markets or predict tomorrow but we are very much involved in
helping the longer-term recovery – for both the City and the wider
UK.
Of course we are in an entirely new situation and new
transparency, new responsibility and new regulation are all needed.
However, we also believe that any new regulation must be workable,
focussed, intelligent and not act as an inhibitor of recovery. The
new regulations need to target risks and outcomes rather than be
process-driven and need also to take into account the globally
competitive nature of financial services.
We welcome the FSA’s promise to work on new and effective
regulation, built carefully, with consultation. The global problems
we face need global solutions and a key way in which the City
Corporation contributes to this is through on-going discussion with
key global figures and institutions.
A few examples from the last weeks include the hosting New York
Mayor Bloomberg’s City meeting with sector leaders and London Mayor
Boris Johnson, a high-level EU meeting in Brussels, the Lord
Mayor’s meetings in Japan and Singapore (following this summer’s
visit to the USA), and an upcoming visit next week to Shanghai
& Beijing. We continue to work closely with government both
national and local, political parties and all those involved as
they look forward beyond the current crisis.
Certainly, the near future will not be an easy time for the UK,
London, the City or the City Corporation. But we here, both elected
Members and officers, must remain focussed on our role of helping
to sustain the Square Mile - and the part it plays in the UK and
European economy.
There is no doubt that the City Corporation’s own finances will
be affected by the current turmoil and I have asked for a report
into the potential impact. The City Corporation also provides
important local government services to the Square Mile and other
services for wider London and we must carefully examine any
implications for these. I can confirm already that we do not have
any investments in Icelandic banks.”
Ends
*adapted from statement to the Court of Common Council Thursday
16 October 2008