Current banking regulations is a venomous potion for smal businesses

Sir, Vince Cable the UK Secretary of state for business, in “Private recovery is the only potion for growth” February 18, worries about “growth being undermined by costly, limited bank finance for smaller business”

Excuse me! Does the UK Secretary of state for business not know that limiting and making more expensive the finance for smaller businesses is a direct consequence of the subprime banking regulations that so odiously and regressively discriminates against perceived risks?

Does the UK Secretary of state for business not know that while banks are required to hold important levels of capital against lending to the small businesses, it needs to hold basically no capital at all when lending to the government?

What the UK Secretary of state for business should be doing is to protest the venomous regulatory potion that attempts against real private recovery… and not leave that to Sir John Vickers’ banking commission, which does probably not care one iota about small businesses.