I admire Peter Sands, the group chief executive of Standard Chartered. Unlike many of his peers, he does not rely on making arguments behind closed doors. He is prepared to make arguments publicly, instead. He did this in a piece he published in the FT last week (“The dangers of our new regulation”).
The fact that I admire Mr Sands, does not mean I agree with him. On the contrary I found this article valuable, not because I thought it right, but because I found it revealingly wrong.
Mr Sands starts by saying that Standard Chartered (a bank that has, by the way, almost no business in the UK) supports the idea of macro-prudential regulation.
Nevertheless, he argues, the approach taken by the Bank of England’s interim Financial Policy Committee to which responsibility for such regulation will be transferred in forthcoming legislation is “extremely interventionist and extraordinarily blinkered”.