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 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Shock poll shows voters believe Ukip is to the left of the Tories
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Ukip candidate jokes about 'shooting peasants' in racist and homophobic rant
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
iJobs Money & Business
$200 - $350 per annum: Carlton Senior Appointments: Managing Producer Office...
$125 - $225 per annum: Carlton Senior Appointments: San Fran - Investment Advi...
Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...
Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...