In the week which saw Mervyn King admit the Bank of England should have done more to warn on the risks banks were taking ahead of the 2008 crisis, John Redwood gives his verdict on what measures could have been implemented.
The Governor of the Bank of England gave a lecture this week on what went wrong with bank regulation in recent years. He then told us how the Bank would use its new regulatory powers in future. The lecture was remarkable for how little it said, and for the lack of the ideas to deal with today's problems. The Governor thought the last cycle was a bust without a boom. As far as he was concerned inflation stayed relatively low, and the economy was growing at what he thought was around trend. The rest of us saw a wild asset bubble, a boom in bank credit and in financial instruments, and a n...
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