Bank of England Governor repeats call to reform banks

Mervyn King, Governor of the Bank of England, yesterday repeated his call for banks to be reformed.
Speaking to the House of Commons Treasury Select Committee, he revealed that in autumn 2008 the Bank of England extended £61.6bn emergency support to Royal Bank of Scotland and HBOS. The financial system in the UK was on the brink of collapse and rapid action was required, he said.
The announcement came as a surprise to Treasury Committee members because the information had not been released before.
In his opening comments, Mr King stated that "having experienced the wider economic consequences of the financial crisis, it is right that households and companies expect fundamental reform to the structure and regulation of our whole financial system." His call echoes CSM's campaign to separate risky banking from retail banking.
(Author: CSM)

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