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King repeats call for banking reform

Bank of England governor Sir Mervyn King has admitted the organisation could have done more to prevent the banking crisis and has renewed calls for reform in the troubled sector.

Speaking at The 2012 Today Programme Lecture in London last week, King claimed the Bank was not blind to what was happening in financial markets and had tried to warn that the risks were being underestimated.

He told the audience: “So why, you might ask, did the Bank not do more to prevent the disaster? We should have. But the power to regulate banks had been taken away from us in 1997. Our power was limited to publishing reports and preaching sermons.

“And we did preach sermons about the risks. But we didn’t imagine the scale of the disaster that would occur when the risks crystallised.”

King says in hindsight the Bank should have shouted from the rooftops that a system had been built in which banks were too important to fail, that they had grown too quickly and borrowed too much, and that so-called light-touch regulation hadn’t prevented any of this.



Axing interest-only won’t resolve the problems of today

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Johnson Fleming set to hold auto-enrolment support webinar

Two years since the process of auto-enrolment began, the looming re-enrolment deadline provides the perfect opportunity to assess whether the support you have in place, which may well have been hastily selected at the start, is fit for purpose. Johnson Fleming is holding a webinar on 10 September at 11:00 to discover the key issues and concerns you should consider when thinking about your current support options.


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