Jonathan Todd

Interesting developments. And news to delight Harriet Harman, amongst many others, I am sure. Efforts are afoot to create Lehman Sisters or something akin to it. Amidst the continuing regulatory and legislative whirlwind that the financial crisis has – not unreasonably or unexpectedly - unleashed, it is noteworthy that the creation of Lehman Sisters is a market outcome, not the consequence of a regulatory or legislative initiative. As such, I hope it has been properly factored into counterfactual analysis of the government’s latest plans, as part of H. M. Treasury’s impact assessment processes. These plans now seem somewhat unnecessary if these counterfactuals really can conclude that another financial crisis will be avoided in the world of Lehman Sisters et al.