Bank of England chief slams bankers again, hints at breaking up banks

For the long term health of many western countries (of course, including the US) breaking up the banks has to happen. As they stand today, no country can afford the loss of one of these giants. The Guardian:

A fragile peace pact between the government and Britain’s top banks has fractured as the Bank of England’s governor, Mervyn King, delivered a scathing rebuke to top financiers for taking big bonuses while exploiting “gullible or unsuspecting” customers.

In an attack that drew an angry reaction from the Square Mile, King suggested that “imbalances” in the banking system are beginning to grow again, posing a risk of another credit crunch.

The governor, who will get broad powers to regulate the banking industry when the Financial Services Authority is abolished next year, accused high-street lenders of taking a short-term view to “simply maximise profits next week”. And he asked: “Why do banks in general want to pay bonuses? It’s because they live in a ‘too big to fail’ world in which the state will bail them out on the downside.”

An American in Paris, France. BA in History & Political Science from Ohio State. Provided consulting services to US software startups, launching new business overseas that have both IPO’d and sold to well-known global software companies. Currently launching a new cloud-based startup. Full bio here.

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