Bank of England surprised by severity of crisis

Recent Outbreaks Posted on

The Bank of England saw the financial crisis coming, but didn't expect it to be so severe, its deputy head said in an interview aired Monday.

"We did spot some crazy borrowing going on ... and we said, actually, for a couple of years before the crash that a correction was coming," John Gieve told the BBC .

But, he added: "We didn't think it was going to be anything like as severe as it turned out to be."

Gieve said the bank didn't have the ability to stop the crisis from happening, and called for new tools for the bank to control the financial sector.

"One of the main lessons from this is that we need to develop some new instruments, which sit somewhere between interest rates, which affect the whole economy ... and individual supervision and regulation of individual banks," he said.

He said that if the bank had tried to use interest rates to keep the price of assets — like houses — from spiraling upward over the past couple of years, it would have held down the level of activity in other parts of the economy, like manufacturing, that needed to be allowed to enjoy prosperity.

Legal News Media

Legal News is the top headline legal news provider for lawyers and legalprofessionals. Read law articles and breaking news from law firm's across the United States to get the latest updates. We reserve the right, at our discretion, to change, modify, add, or remove portions of the site at any time. Your This site is solely for your personal use. You are, of course, welcome to print or otherwise copy material from this site for your personal use. However, you may not distribute, exchange, modify, sell or transmit anything you copy from this Site, including but not limited to any text, images, audio and video, for any business, commercial or public purpose. Any unauthorized use of the text, images, audio and video may violate copyright laws, trademark laws, the laws of privacy and publicity and civil and criminal statutes.


American Bar Association – Start and Run a Law Firm – Starting a Law Firm

Lawyer Website Designs