Global giants still 'too big to fail', warns Bank
More than five years after the collapse of Lehman Brothers there are still global banks which could not be wound up successfully without causing damage, a deputy governor of the Bank of England warned yesterday.
“I do not think we can say with confidence that we could resolve a failing global giant,” said Sir Jon Cunliffe, who is responsible for financial stability. “Getting agreement on international standards to end ‘Too Big to Fail’ is perhaps the regulatory priority for the G20 summit in Brisbane in November.”
Last year Sir Jon’s predecessor, Paul Tucker, surprised many by saying a giant bank could now be wound down, albeit not totally smoothly.
Although rules to make banks hold more capital and avoid having to take taxpayer money have been far-reaching, Sir Jon believes that the task of ending “too big to fail banks” remains.
He added: “Regulators and supervisors who cannot trust the implementation of standards in other jurisdictions will defend stability in their own jurisdictions by raising barriers. Such action minimises the risk of international crises, but the cost is the rolling back of financial globalisation, with less effective and efficient intermediation on global savings.”
The comments came ahead of a speech today by Mark Carney, the Bank’s Governor, in which he is due to outline wide-ranging reforms, including details of a new post of deputy governor responsible for markets and banking. It is also thought he will reveal Charlie Bean’s replacement as deputy governor for monetary policy when Mr Bean retires in June.
Potential internal candidates include the chief economist Spencer Dale, markets director Paul Fisher and Monetary Policy Committee member Ben Broadbent. External options include Lucrezia Reichlin of the London Business School – Mr Carney is keen to have more women in senior posts.
- 2 The man who filmed the Freddie Gray video has been arrested at gunpoint
- 3 How the language you speak changes your view of the world
- 4 Tory activist asked to step down after Labour candidate Rupa Huq is 'manhandled' while questioning Boris Johnson on the campaign trail
Oxygen-starved 'dead zones' with no marine life up to 100-miles long discovered in the Atlantic Ocean
The man who filmed the Freddie Gray video has been arrested at gunpoint
Indonesia executions: Death row British grandmother Lindsay Sandiford will refuse to wear a blindfold when she faces firing squad
Russian warships accused of 'chasing away' Swedish vessel to prevent Baltic States from achieving energy independence
How the language you speak changes your view of the world
Over 50,000 families shipped out of London boroughs in the past three years due to welfare cuts and soaring rents
EU asylum policy is 'a direct threat to our civilisation', says Nigel Farage
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
General Election 2015: SNP and its activists 'openly racist' towards the English, Farage says
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
Schools forced to act as 'miniature welfare states' with teachers buying underwear and even haircuts for poor pupils
iJobs Money & Business
£16000 - £18500 per annum: Recruitment Genius: This is an excellent opportunit...
£24000 - £28000 per annum: Recruitment Genius: A Senior SEO Executive is requi...
£16000 - £18000 per annum: Recruitment Genius: An Online customer Service Admi...
£18000 - £22000 per annum: Recruitment Genius: This global, industry leading, ...