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AMENDMENT OF THE LAW

The Government had to take action on Northern Rock because many innocent individuals were caught up in something that was not of their making. Unlike the position of, for example, the Bank of Credit and Commerce International, whereby people were seduced by high returns on their money, Northern Rock looked like a good, normal bet. However, the Government have been found wanting on the speed of action and the direction of travel. The institution wallowed in difficulty and the share price has been adversely affected, perhaps disproportionately, by the delay in acting. However, some action had to be taken. The article in The Economist that I cited earlier concluded:"““But whatever happens to the industry,””—" the banking and investment industry—"““it would do its reputation a power of good if over the next ten years its activities were adjusted to benefit its clients a little more and its managers a little less.””"