|
Bank's Governor blasts 'hubris'
of the bankers he blames for credit crisis
SAM FLEMING
UK
Daily Mail
Thursday, March 27, 2008
Mervyn King yesterday lashed out at the "hubris" of
bankers whose greed had triggered the credit crunch and the current
world financial crisis.
In an extraordinary intervention, the Bank of England Governor
said turmoil in the banking system had worsened in recent weeks
and that lenders would have to be more strictly regulated to prevent
excessive risk-taking.
He said: "This financial crisis... arose out of the heart
of the financial systems, in the main financial centres."
Mr King told the Commons Treasury Select Committee: "There
are a lot of lessons to be learned.
(Article continues below)
"The conclusions inevitably tend in the direction of saying
that financial institutions will have to hold more capital in
the longer run and that these activities will have to be monitored
much more carefully."
He said the global crisis had moved into a new phase.
Mr King said: "Across the world, confidence in financial
markets is fragile. It is not that banks, at least in the UK,
have made loans that are likely to result in unsustainable losses.
"The heart of the problem is not in the real economy. It
is in the financial sector itself.
"There is a lot of hubris around in thinking that the expansion
of financial services was a good in itself. It is not. It is a
means to an end."
The governor told the MPs he will resist any calls for taxpayers
to fork out more money to bail out irresponsible lenders.
Full
article here.
|
INFOWARS:
BECAUSE THERE'S A WAR ON FOR YOUR MIND
|
|
