Former Bank of England Governor Mervyn King Warns: ‘Without Reform of the Financial System, Another Crisis Is Certain’
Feb. 28, 2016 (EIRNS)—Mervyn King, the former Governor of the Bank of England, has written a book that is getting a lot of publicity, including in the British media. He says that after the 2008 crisis, there was a lot of "frenetic activity" among regulators, and although much
"useful repair to the fabric of regulation has been made, nothing fundamental has changed. The alchemy of our banking system remains."
Therefore he warns:
"Only a fundamental rethink of how we, as a society, organize our system of money and banking will prevent a repetition of the crisis that we experience in 2008.... What about the next crisis? Without reform of the financial system, another crisis is certain."
King predictably fails to propose anything of substance, although he does mention Glass-Steagall en passant, noting that Dodd-Frank is 2,300 pages long, "whereas the Glass-Steagall Act of 1933, which separated commercial and investment banking, covered a mere 37 pages."