The City of London’s reputation for financial competence has been damaged by the nationalisation of Northern Rock, say business leaders in the UK and around the world.
Sally Lowe, director of policy at the British Chamber of Commerce, said: “This situation certainly has not done London’s reputation any good. Only time will tell how much it has been damaged in the eyes of the world.”
London’s status as an international financial centre was already under threat from a crackdown on non-domiciles, who will have to pay an annual levy of £30,000 from April, and controversial changes to capital gains tax, she warned.
Richard Lambert Director General of the CBI, says:
“Northern Rock has revealed serious shortcomings in our regulatory system, and in our approach to dealing with troubled banks. Consultations now under way to correct these failings are of vital national importance.”
The New York Times reported the story as a “huge blow for the administration of Gordon Brown,” While the Wall Street Journal reported, “Taking full responsibility for one of the country’s largest mortgage lenders is a politically treacherous move for the government.”
Spain’s business paper Expansion warned that the nationalisation could strike a blow to London and its reputation as a finance centre.
0 comments so far
There are no comments for this post yet. Why not be the first by filling out the form below.