Perhaps it’s time for lawyers to take on a grander role to assure that regulators aren’t overextending their reach, bankers are held accountable, and courts maintain supervision over politicians. The fragile state of the U.K. banking sector is often overstated, according to popular economic and political discourse, with many predicting a precipitous collapse that could potentially spur widespread unemployment, business insolvency, and even precipitate a housing market crash.
Contrary to this common narrative, U.K. banks and building societies have reportedly remained resilient throughout the pandemic, maintaining robust liquidity and capital positions, and continue to post healthy profits in the post-pandemic era. The major banks have even passed the Bank of England’s resilience test (in a severe stress scenario), demonstrating considerable stability in turbulent times. Such stability was further evidenced when the collapse of Credit Suisse and three mid-sized U.S. banks in 2023 did not significantly impact the U.K.’s banking sector.
Despite the paywall limiting access to the entire article, it brings up critical questions about the role lawyers can play in safeguarding public interest, particularly in the often volatile and high-stakes world of banking. The larger question introduced here is the potential for lawyers to become, in essence, the public’s guardians.
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