Why you need eyes like a hawk

FT columnist John Kay recently argued that an innovation that people want but that the banks are avoiding is a faster payment systems. In 2000, the government promised to act to make the system less slow and expensive by setting up an agency to oversee payments. A year later it backed down and proposed giving the powers to an existing agency. Two years later it set up a task force to monitor developments. Two years later it set up payments council to take over from the task force. This council was headed by the man who ran the banks' payments system and 11 of its 15 members were from banks. Lots of activity, little action. In the US, George Bush found a neat way to trim the powers of regulators overseeing the financial institutions. He cut their budgets so they could not afford to do their jobs. Local retailers hoping to persuade their politicians to support their businesses may take two things from these stories. First, getting legislators to act in favour of the little guy is difficult. Second, keeping him to his promises requires constant attention.