When the Old Lady slept: the Bank of England and the financial crisis

Among those responsible for UK regulation during the financial crisis, the Bank of England came out of it rather well. The Treasury had to bail out the banks (and unlike its US counterpart, it hasn’t yet been paid back). The Financial Services Authority was disgraced and dismantled. The BOE on the other hand, emerged with an enlarged balance sheet and increased regulatory powers. It wasn’t until the Libor rigging scandal a couple of years ago that the record of the Bank’s senior management (former governor Mervyn King and his deputy Paul Tucker) was seriously questioned.

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