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Jethro Tull's Ian Anderson Is a Glass-Steagall Man

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AGING ROCK STARS AND BANKING REFORM
DailyFeed
Sir John Vickers’ Independent Commission on Banking released its interim conclusions regarding ways to make the UK banking system safer, on Monday -- and, contrary to what many panicky bankers in London feared, “There is nothing in the report that screams this will damage London,” admitted one senior executive to the Financial Times.

The FT says Barclays "feared the potentially huge impact of splitting its investment bank from UK retail operations." And at HSBC, Stuart Gulliver, now the firm's CEO, "told a Nomura conference that unwinding the 'universal' model that allows banks to house high street and higher-risk investment banking under one roof would be 'very, very regrettable.'"

However, to Jethro Tull's Ian Anderson, Glass-Steagall-style regulations are exactly what England's banking sector needs.



In a 2009 interview with The Telegraph, Anderson expressed his dissatisfaction with the "universal" model.

Q: Who do you bank with?

A: We used to be with the Bank of Scotland and RBS, or just 'The Bank' and 'The Royal' as we used to call them. But I'm now attracted by the idea of moving out of the potentially disastrous global banking system. I've been speaking to the people at CJ Hoare, the last proper independent bank.

The high street banks went for the quickest short term gains, but if they had been forced to handle our money as if it were their own you can bet they would have been more cautious. Customer banking should be strictly separated from investment banking – if you want to take a punt on a roulette wheel you should at least be told that's what you're doing.

A few choice tidbits:

The man behind "Cross-Eyed Mary" doesn't like online shopping ("I've had two or three occasions of credit card fraud, so I am nervous of using them online. Last year it happened while I was on tour in America and it's a pain to have a card stopped when you're away."), he once tried his hand at aquaculture ("We had 11 fish farms, a smokehouse and two processing factories. At one point we were employing 400 people, mostly in the factories, and turning over £12m a year. But ... it was nerve-racking because I was aware that just one year of disease would have wiped us out and that's why I left it."), and could have been a CPA in another life ("I'm not one for Sudoku or crosswords – the thing that fires my little brain is doing tour budgets. ...Whenever I get a spare minute I'm always tweaking my Excel spreadsheets and I derive a great satisfaction from it. I have a line that says "contingency – 2pc", but if I was as much as 2pc out of budget I would slit my wrists.")

Aqualung, my friend -- don't make it sound so easy...
POSITION:  No positions in stocks mentioned.

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