The biggest policy mistake in history?

Kames Capital's investment grade bond managers Stephen Snowden and John McNeill have accused regulators of making the credit crunch even worse by imposing too many restrictions on banks too soon after the financial crisis.

The pair, who manage the £300m Investment Grade Bond fund, said telling the banks to deleverage, rebuild capital, and increase lending is "asking the impossible" and likely to go down in history books as "one of the key policy mistakes made" post the 2008 crisis. McNeill said: "Banks were inadequately capitalised coming into the crisis, the mistake was to then ask them to recapitalise too quickly. Then we had the domestic regulators and Basel III coming in - it has exacerbated the credit crunch." He also said deleveraging so soon after the crisis meant banks were forced to sell off th...