The former director-general of the CBI and former editor of the FT goes on to say: "Sure, its recommendations will have economic costs, but they will be trivial – especially since they will reduce the likelihood of any future banking catastrophe. And yes, they will impose extra burdens on the banking system, but these will not be as heavy as some have suggested. The impact on the City of London will be broadly neutral, and banks will have no new incentives to relocate elsewhere, since the proposed regulations will apply primarily to their high street business which by definition has to stay where it is.
But notwithstanding all this polite analysis, there is plenty here for the banks to object to. Their battle will be fought in two main areas: costs and competition."
Read the full article here: http://www.ft.com/cms/s/0/a6886e5e-dd35-11e0-b4f2-00144feabdc0.html#ixzz1Xk3aMwCB