So, who to blame for the curse of red tape? Politicians and bureaucrats are the obvious targets, but let’s not forget the lobbyists. By and large, corporate interests love regulation – the more complicated the better. Not only is the regulatory thicket shot through with loopholes for those in the know, it also acts as a barrier to market entry – thereby protecting established positions.
Trying to outwit the lobbyists with evermore elaborate rules is like trying to drown a fish – pretty pointless. In respect to the banking sector, Steve Baker MP argues for a radical alternative. Instead of expecting financial regulators to keep up with financial innovators, he wants to make bankers personally liable for any losses their banks incur:
Read the whole of his speech to Parliament, here.