Lib Dems say regulation failure is allowing irresponsible lending

The Liberal Democrat shadow chancellor has proclaimed that regulation has allowed banks to lend irresponsibly.

Commenting on Tuesday&#39s Monetary Policy Committee minutes, Vince Cable, Liberal Democrat shadow chancellor, says: “The most pressing issue for the chancellor is to address the failure of regulation that has allowed banks to lend irresponsibly and fuel unsustainable levels of debt.

“It is clear that house prices are causing a headache for the bank. While the bank tries desperately to create a soft landing for borrowers, and not crush the hard pressed manufacturing sector, the chancellor seems oblivious to the dangerous imbalances in the economy.”