Complacency over banks risks new financial disaster, BoE policymaker warns US
A new financial disaster may well be at the means if the teachings of the credit score crunch are forgotten and vital restrictions on lending are scrapped, a best Bank of England policymaker has warned.
Complacency brought about the disaster a decade in the past and may just finally end up sparking the following one, stated Donald Kohn, a former vice-chairman of the Federal Reserve and now a member of the Bank’s financial coverage committee.
He advised regulators “to avoid the trap of forgetting and repeating history”.
“I fear memories may be fading; banks in the United States are profitable and well capitalised, and their requests for regulatory relief are falling on sympathetic ears in some quarters,” he informed a convention in Denmark.