Futures Market News
BoE chief says body should have warned more strongly of financial trouble ahead prior to 2008
May 03, 2012 11:23 AM
The Bank of England committed a grave error by not being more assertive about issuing advisories about the imminent economic crisis that began in 2008, Bank of England Governor Mervyn King said during a radio address, according to Reuters.
His Wednesday address, the first peacetime talk of a BoE governor since 1939, noted that people should have been more strongly warned as the crisis was arriving.
"With the benefit of hindsight, we should have shouted from the rooftops that a system had been built in which banks were too important to fail, that banks had grown too quickly and borrowed too much, and that so-called 'light-touch' regulation hadn't prevented any of this," King said.
King, who will leave in a bit more than 12 months, said the BoE has not had jurisdiction over regulatory issues since 1997. But it will shortly after he leaves.
Bloomberg reports he and the eight additional members of the Monetary Policy Committee are facing a May 10 deadline to decide whether to continue or stop monetary easing, which thus far has seen the equivalent of $529 billion in asset purchasing.
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