The Impact Of Legislative And Financial Regulatory...

This essay shall critically analyze the impact of the legislative and financial regulatory responses regarding the financial crisis in 07/08. Including responses from HM Treasury Management, legislations being passed such as the 08/09 Banking Act, Governmental policies, Bank of England, Financial Service Authority and the Financial Services Act creating a new regulatory system. These key functions shall give an outlook and help towards analyzing the impacts of such responses. The HM Treasury’s management responded to the UK financial crisis by â€Å"significantly boosting its internal staffing levels, skills and expertise† as a result of the initial level of staff not being able to fulfill their necessary duties. It changed from a small team†¦show more content†¦This Act provided an immediate instrument for UK banks to be transported into public ownership and then - if there is one - to make a further transfer to a buyer in situations where it is necessary to maintain stability in the UK financial system . This was also a good response because by using this act it allowed The Treasury to nationalize Northern Rock and parts of Bradford Bingley . Nationalization safeguarded the bank’s future, which was crucial for the country’s financial well-being, this is great because it could be monitored closely by the government on behalf of the taxpayer - preventing the banks from making the same detrimental mistakes . However, this act was replaced by the Banking Act 2009 that made provision for the nationalization of banks, it amended the law on bank insolvency and administration. This shows the that the Banking Act 2008 is an inadequate response because it was in need of reformation due to nationalization not being successful in the hands of the public, rather only a short term solution. Furthermore, it can be argued that politicians are not the right people to run the banks. They do not have the commercial abilities essential to run such important and challenging financial institutions. If experienced veterans of the banking industry were unsuccessful in evading the pitfalls recently, inexperienced government personnel are very unlikely to succeed. It can be said that the financial, and in