The Bank of England governor admitted this week that he was not able to successfully prevent the British banking system from collapsing under the worst recession in the last eight decades. Sir Mervyn King also implicated the Bank of England in the disaster stating that some may wonder why they did not help prevent the disaster from occurring, stating that they should have been able to.
He also admitted that the Bank of England regrets that they did not properly warn the public that the economy was about to crash as millions are now still suffering the fallout. The event was notable for more than just the apology however, as King’s radio broadcast as the first to be made in over seven decades.
The main sentiment expressed was not that the Bank was not aware of what was impending, but instead that they did not do enough to prevent it from happening. He did add however that the Bank has not been allowed to regulate the banking industry since 1997, but also noted that they do have the power to preach and warn consumers and that they did not do enough leading up to the economic crash.
According to King, they could have told the public better about the impending financial crisis possibly helping people adjust before they were hit. He also said that he has a large amount of sympathy for the many victims and that there are now millions of people looking for work which he believes is unfair.
In addition, he added that bankers that are still taking their bonuses even though the firms are suffering or taxpayers are suffering are wrong and that they should think twice about their actions because they are disrespectful of the current economic situation in the UK.