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.
by Timothy F Geithner (Random House 2014) If you had perfect foresight and were going to pick the best regulator or policymaker capable of dealing with the global financial crisis and its aftermath, whom would you choose? You'd probably want someone with a track record of dealing directly with crises, perhaps in emerging markets, and… Continue reading..
Are we on the verge of another Lehman weekend? The crisis of September 2008 unfolded in several stages: 1) a long bubble in subprime and credit markets in general, in which Lehman and other banks profited from by increasing their balance sheet leverage, 2) following a realisation that subprime was a haven of fraudulent lending,… Continue reading..