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.
The magicians using online collaboration to push boundaries
Jennifer Lawrence attacks mass media again over body image
Jennifer Lawrence: 'It should be illegal to call someone fat on TV'
Colin Farrell reveals ‘affair’ with Elizabeth Taylor: 'She was my last romantic relationship'
Ian Watkins: Paedophile Lostprophets singer sentenced to 35 years for child sex offences, as judge labels him a 'dangerous sexual predator'
Children evacuated from swimming pool after prosthetic leg mistaken for paedophile
Devyani Khobragade: India-US row escalates over arrest of diplomat in New York
- 1 America's 'virgin births'? One in 200 mothers 'became pregnant without having sex'
- 2 Sun will 'flip upside down' within weeks, says Nasa
- 4 Christmas comes early: Justin Bieber announces he's 'retiring from music'
- 5 Children evacuated from swimming pool after prosthetic leg mistaken for paedophile
- < Previous
- Next >
iJobs Money & Business
£25000 - £32000 per annum: Harrington Starr: Junior Business Analyst - Banking...
£25000 - £35000 per annum + benefits + bonus: Harrington Starr: Business Analy...
£50000 - £75000 per annum + benefits + bonus: Harrington Starr: Implementation...
£50000 - £60000 per annum + BONUS + BENEFITS: Harrington Starr: A leading prov...