The failure of German banking

Despite positive economic data recently reported from Germany, the country’s financial crisis is far from over. On the contrary, it could re-emerge any minute. For the rest of the world, the German public banking disaster at least holds one lesson: politicians are no better at running banks than traditional bankers. [...]

The rock that became a millstone

The formal nationalisation of Northern Rock is only the logical conclusion to the Government’s months-long involvement with the failed mortgage lender. Since it was bailed out after last year’s run on its deposits, the people ultimately in charge of it have been Gordon Brown and Alistair Darling, and it will be them who will pick up the political bill for any mistakes. [...]