Sir, Patrick Hosking (“Too big for their own good,” Business, Aug 29) supports Lord Turner of Ecchinswell, saying that the UK financial sector is far too big and draws talent from more “socially useful” industries.
Without the financial sector, people would not have pensions, or be able to finance their homes and businesses, or be able to insure their cars — and the Chancellor could no longer afford the NHS or welfare benefits. Bankers pay for talent because they need it.
The financial services sector is the one world-beating industry in Britain. If any employment is socially useless, it is within the unproductive public sectors, notably the Financial Services Authority itself, which did such a bad job of regulating the banks.
Yes, the financial sector has let us down and needs better regulators. Our politicians, for good short-term reasons, have further consolidated the industry when we should be breaking it up and increasing competition.
Lord Turner should be repairing and building on the success we have, not shrinking the most productive part of our economy.
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Tim Ambler
Fellow, Adam Smith Institute