03 Jul Will ‘Lie-borgate’ confound SNP’s independence policy?
Will SNP policy of keeping UK regulators post-indpependence in light of the
Libor scandal? IMAGE: STOCKPIX.EU
Scottish independence: Will Lie-borgate confound SNP independence policy
With senior bankers, politicians and regulators all being dragged into the Libor scandal it is as yet unclear how the revelations – over what appears to be an epidemic of fraud – will impact on the UK’s body politics.
One curious aspect of the story is how the “Lie-borgate” revelations will impact on Scotland’s independence referendum campaign.
It seems like an open goal for the SNP who can ask the electorate why a Westminster-City axis mired in corruption can be deemed preferable to an independent Scotland.
However there is an awkward question in this UK “cesspit” of corruption for the SNP: Why on earth would an independent Scotland want its currency and banks to be regulated by these UK institutions which have now fatally undermined the UK’s global reputation as a respectable financial hub?
Finger pointing abounds. The Tories are drawing in Gordon Brown, Alistair Darling and Ed Balls who were the head Treasury honchos of the last Labour Government when the interest-rates fixing started. However, none of this has come to light since the Tories themselves came to power.
Equally, now that the Bank of England is being fingered they are distancing themselves from banking chiefs who all say they are sorry and how did all this escape the notice of the Financial Services Authority anyway?
If there was a moment for the SNP to open up a policy review on what Scotland’s currency should be and which institutions should regulate Scotland’s banks and currency this impasse – which will surely deepen and widen – presents a propitious opportunity.
Who could blame the Scottish Government for abandoning its sterling policy now? If it doesn’t then how can it simultaneously demand the investigations which Scottish citizens deserve into this scandal and at the same time maintain a policy whereby those implicated would have a key regulatory role in an independent Scotland?
Perhaps now is the time for the Nationalists to change tack, drop ‘indy light’ and embrace full independence?
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