Some British banks don’t like the idea of having their retail operations “ringfenced” from riskier investment banking activities. Why would they? It sounds like another regulatory attempt to pen in capitalism’s animal spirits.
But when it comes to putting obstructions in the way of managers, regulators are mere dabblers. The real experts at imposing unnecessary administration on companies are the managers themselves.
Complex multinational companies need some structure. How costly and burdensome depends only partly on the nature of the business. Directly regulated sectors, including banking and utilities, require a built-in minimum level of compliance and process. Safety-critical areas of the manufacturing, energy or healthcare industries should answer to carefully enforced codes.