Central Bank?

January 10th, 2012 by De Onion

I just don’t get it.

The Premier did elaborate on the rationale for seeking a Central Bank for Bermuda during the briefing.

Currently, she said, the lender of last resort is the Government of Bermuda.

“That’s why when we had a situation with one of our local financing institutions we had the government give that $200 million guarantee,” she said.

“I think that every country is looking at where they can be more protectionist of their taxpayer and also not being held accountable for the faults or the excesses of others.

“For Bermuda it’s a coming of age to at least have those discussions. And also look at what are our options. It could be in Europe, it could be in the US but it is a reserve, separate, over and above of what we have.”

I really want to hear more about this. I mean, Bermuda doesn’t really have its own currency so what other lender of last resort would there be? Bermuda had the opportunity to create a sovereign wealth fund 2003-present but instead the government threw financial management to the wind and we’re upside down to the tune of $1.2+ billion.

To top it off, the taxpayer is being held accountable for the faults and excesses of the PLP.