Mervyn King: Banks 'exploit gullible customers'
Sunday 06 March 2011
High street banks are bracing themselves for share sell-offs and more public criticism tomorrow after the Bank of England Governor launched an astonishing attack, warning of another banking crisis if the sector is not reformed.
In a remarkable newspaper interview, Mervyn King complained that banks' only concern was to "simply maximise profits next week" and that "imbalances" were returning to the sector. He also criticised the bonus culture, and appeared to suggest that he will find ways of clamping down on banks making money out of "gullible or unsuspecting customers".
The comments are seen as hugely significant as the Bank of England will soon be taking over regulation of the industry. The Deputy Prime Minister Nick Clegg yesterday joined the renewed attack, saying he agreed "the job of making our banks safe and responsible is not yet complete".
However, the industry protested that it had "reformed radically" since the crisis that forced the Government into a series of multibillion-pound bailouts in 2008. The big banks have announced strong results in recent weeks, with Standard Chartered confirming a pre-tax profit of more than £3.7bn last Wednesday.
"The banking industry recognises that some of its number got it badly wrong during the crisis," Angela Knight, chief executive of the British Bankers' Association, said in a statement.
Mr King's attack comes ahead of a week in which members of the Monetary Policy Committee, chaired by him, are again expected to be divided over whether to raise interest rates.
- 1 Howard Jacobson: Let's see the 'criticism' of Israel for what it really is
- 3 Belgium fan Axelle Despiegelaere lands L'Oreal campaign after World Cup viral photo
- 4 Britney Spears sings 'Alien' without Auto-Tune in embarrassing leaked audio clip
- 5 PornHub begs users to stop uploading video clips of Brazil getting beaten 7-1
Instagram of US airport security chiefs: Lipstick knives and IED training kits among items seized
Game of Thrones author George RR Martin says 'f*** you' to fans who fear he will die before finishing Westeros saga
Mick Jagger denies being World Cup curse and reason for Brazil’s embarrassing defeat
Israel-Gaza crisis: ‘We just want it to end… We don’t deserve to live like this’
Israel-Gaza crisis: Eight killed in Gaza Strip cafe while watching World Cup semi-final
Sustained immigration has not harmed Britons' employment, say government advisers
Australia facing international condemnation after turning around Sri Lankans at sea
7/7 memorial defaced on anniversary of 2005 attacks with ‘Blair lied thousands died’ graffiti
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
Socialist Worker called to apologise over ‘vile’ article saying Eton schoolboy Horatio Chapple's death is ‘reason to save the polar bears’
There’s a nasty smell in the political air – and it’s coming from the Tories
iJobs Money & Business
£12 - £15 per hour: Cameron Kennedy Recruitment: Excellent opportunity to join...
£400 per hour: Orgtel: Technical Business Analyst - Banking - Bristol - £400pd...
£38000 - £42000 per annum + competitive: Real Staffing: Required skills:Previo...
£60000 - £75000 per annum: Harrington Starr: Business Analyst Consultant (Fina...