September 18, 2009

Lloyd's of London chairman Lord Levene warned that 'irreparable damage' could be inflicted on the financial sector if politicians and regulators undermine its position.In an apparent criticism of comments by Financial Services Authority boss Lord Turner, Levene warned that it was 'dangerous' to talk about the need to cut the banking sector down to size because it is not 'socially useful'.

Turner believes that among the results of the crisis is that the existing investment banks, those left standing after the system imploded, have become ever more profitable, as they now have an 'oligopoly' on financial transactions such as foreign exchange and dealings in government bonds. Lord Turner has called for a strong regulatory hand in managing the situation.