Sam Fleming in The Times today reports on Mervyn King, Governor at the Bank of England speaking to the Treasury Select Committee yesterday 'Standards of living could take years to recover from crisis' .
King is curious at the muted respsonse of the public at banker's bonuses when 'businesses went out of existence' through the crisis caused by the banks. Fleming observes that King is a lot less conciliatory to the banks than is George Osborne Chancellor of the Exchequer. The article mentions that the BoE records actual loans made to businesses rather than the 'loan facilities' that the banks may record which may not be taken up (as the Project Merlin allows). Also that King feels that the effects of the crisis may be very long term. Is the Governor a crypto UK Uncut supporter?
Encouraging that this different understanding of things economic and financial at the top level was so clearly stated by Governor King and faithfully reported by Sam Fleming in quite a short article. By contrast if you search the Financial Times today you will find virtually nothing of the Governors' criticism of banks. How strange. You would have thought that a world class journal which purports to give the best coverage of financial and economic matters would headline it all.
posted by Charles Bazlinton