Saturday, March 05, 2011
King gees up the banking commission
Posted by David Smith at 10:00 AM
Category: Thoughts and responses

In his interview with the Telegraph, here, Mervyn King has another blast at the banks. Having not taken much notice of the banks before the financial crisis, and adopted "moral hazard" indignation at bailing them out, the governor is still seething.

Some would say he's got plenty on his own plate, given the persistent overshoot in inflation, others will see it at putting pressure on the Independent Banking Commission, chaired by the Bank's former chief economist, Sir John Vickers, not to come up with a damp squib.

A quote: “We allowed a [banking] system to build up which contained the seeds of its own destruction”, and this has still not been remedied: “We’ve not yet solved the 'too big to fail’ or, as I prefer to call it, the 'too important to fail’ problem. The concept of being too important to fail should have no place in a market economy.”