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Bankers caused financial crisis, says governor of BoE
http://www.dailymail.co.uk/news/article-2790469/bankers-caused-crash-got-away-says-carney-bank-england-chief-says-bosses-paid-higher-price.html
The Governor of the Bank of England last night launched a stinging attack on the bankers who caused the financial crisis and ‘got away without sanction’.
Mark Carney said the bosses of the banks behind the 2008 global financial crash should have paid a higher price for their errors.
Instead – despite facing limited social embarrassment – they were still on the ‘best golf courses’.
Speaking in Washington, Mr Carney said: ‘The individuals who ran the institutions got away with it. They got away with their compensation packages and without sanction.
‘Maybe they are no longer at the most esteemed table in society, but they are still on the best golf courses and that has got to change.’
During a panel discussion on financial ethics, Mr Carney made it clear he had no sympathy for board-level bankers who would not take personal responsibility for the actions of their organisations.
The Bank governor, who has been in Washington for a series of International Monetary Fund meetings, complained that the authorities had been unable to jail any of the bankers whose failings led to the global financial crisis.
He said: ‘If you are the chairman or the head of the risk committee, you have a responsibility for the activities of that institution.
‘If you don’t think you can do it, you shouldn’t be on the board.’
The new regulation regime of senior managers is designed to make it easier to bring criminal charges in a future banking crisis. Mr Carney added: ‘It does focus the mind of directors and it should. I would like to think that the minds of directors are being focused. Some of them might not like it – that’s okay
A central banker talking sense, that's new.
The Governor of the Bank of England last night launched a stinging attack on the bankers who caused the financial crisis and ‘got away without sanction’.
Mark Carney said the bosses of the banks behind the 2008 global financial crash should have paid a higher price for their errors.
Instead – despite facing limited social embarrassment – they were still on the ‘best golf courses’.
Speaking in Washington, Mr Carney said: ‘The individuals who ran the institutions got away with it. They got away with their compensation packages and without sanction.
‘Maybe they are no longer at the most esteemed table in society, but they are still on the best golf courses and that has got to change.’
During a panel discussion on financial ethics, Mr Carney made it clear he had no sympathy for board-level bankers who would not take personal responsibility for the actions of their organisations.
The Bank governor, who has been in Washington for a series of International Monetary Fund meetings, complained that the authorities had been unable to jail any of the bankers whose failings led to the global financial crisis.
He said: ‘If you are the chairman or the head of the risk committee, you have a responsibility for the activities of that institution.
‘If you don’t think you can do it, you shouldn’t be on the board.’
The new regulation regime of senior managers is designed to make it easier to bring criminal charges in a future banking crisis. Mr Carney added: ‘It does focus the mind of directors and it should. I would like to think that the minds of directors are being focused. Some of them might not like it – that’s okay
A central banker talking sense, that's new.
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He reminds me of Mavis Riley from Coronation street - always in the press saying something but never saying anything really definitive.
I agree which means that those responsible can be held to account or even jailed is welcome.
Companies like this should have just been allowed to fail, and Hank Greenburg should be told to swivel.
So it is the governments fault that the banks gambled and lost? It was the banks who told governments that too much regulation was holding back their business and that easing of those controls along with self-regulation was the way forward.
The only people to blame are those who thought they were invincible and discovered they are human like the rest of us. As far as I'm concerned investors money should have been protected but the banks themselves should have been allowed to go to the wall. If I were to screw up in my job the way these people did there would only be one outcome, I'd lose my job. The same should apply for them but, of course, there's one rule for the rich and another for everyone else but it is everyone else who is expected to bail them out
I never said bankers were blameless it is obvious to anyone they weren't, nor did I say they shouldn't have been sacked and brought to book. I merely said Carney doesn't mention others were to blame as well and just about everybody also knows that, in short I fail to see why he bothered saying anything about it 6 years on.
Do the words "no more boom and bust" ring a bell? ;-)
Just because the banks wanted less government regulation doesn't mean the government had to oblige, even Brown admits he made mistakes in regulation.
http://www.bbc.co.uk/news/business-13032013
Not only that they managed to cause it across the whole world not just the UK.
I'm sure you don't mean Labour but thank God Brown managed to save the world.
No, it was the Bankers - Labour just set up the regulatory environment which let them do it in this country.
However the greed-driven recklessness should have been picked up during internal audits long before the banks collapsed which is why those at the top are just as culpable, if not more so. They were too keen to "turn a blind eye" to wat was going on beneath them because, of course, the artificially inflated profits added to their bonuses as well.
That would be the regulations the Tories voted against I assume...the ones they opposed because they thought they were too strict...
The worst thing? All the same mistakes that led to the crisis are being made again.
Actually, I'd say the worst thing is that the banks now know that the governments are patsies and will bail them out when they overstretch themselves again. That pretty much guarantees a repeat run.
Sorry I thought the Labour Party was in power from 1997-2010. Not only that they had a good majority for that time as well.
And No. I am referring to the structure of regulation - said it before and will say it again. Regulation was moved to the FSA which proved to be incapable and even it's former chairman admitted as much.
Yes indeed, but I think it's all too simplistic to solely blame the bankers
Again you have posted something that could also be attributed to the UK government of the time, by replacing "bonuses" with "taxes".
My view is that it wasn't just the bankers and it wasn't just the government but a mixture of the two, take one part away and it couldn't have happened. Both sides' judgement was clouded by the amount of money that was coming in.
If what this thought criminal is saying were true it would mean that the beloved leader had been punishing the innocent while rewarding the guilty, and we all know that the beloved leader is infallible because he is perfect and therefore can not possibly ever make a mistake,
I urge everyone to ignore this liar and get on with their wonderful lives, leave him to the thought police I am certain they will know how to deal with him.
Too subtle
You forgot immigrants
Yes, where's the deterrent?
Yep, banks are still too big to fail. The next crash will be even bigger so the resulting bailout will also be even bigger.
On the plus side, the next crash may be the one that kills the fiat currency ponzi scheme completely.
Which regulation should have been in place, or has been put in place since, to prevent banks buying AAA rated investments?