Fire and fury

There is much fire and fury about "fat cats"; the public has rarely been that well informed on bankers' and managers' salaries and their bonuses, and to the lay person, who finds it hard to understand financial instruments, the blame needs to fall on people rather than systems. Recall the recent locust debate. It is very difficult to have a political debate with its inevitable blame-shifting on a level few voters would understand. The volatile financial markets have caused a public debate, with the left attempting to leverage the crisis to increase its populist sway in time for Germany's super election year, as well as the elections for the EU parliament.

But debate this is not. In the hearing of the EU Commission regarding private equity regulation, the very people that called loudest for regulation left after their speeches. Industry insiders suggest that the whole debate about stricter regulation was more about making headlines than addressing a need. Politicians want to be seen as doing something rather than actually doing it.

The signs of the times clearly point towards more regulation rather than less, and with unprecedented measures having been waved through with little debate - or in some cases insight - there is little doubt that the combination of a desire for the headlines, scapegoatism, public outrage and loud calls for stricter regulation, can damage the industry at a time when it could be a part of the solution, rather than the problem.

Yours sincerely,

Mareen Goebel

Editor, Deutsche unquote"

Tel: +44 20 7004 7462

mareen.goebel@incisivemedia.com

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