King to get tough on banks’ balance sheets

The governor for the Bank of England, has warned that central banks and
financial institutions were ‘extremely likely’ to toughen regulation in light of
the current credit crisis it was reported in the

‘It is too early to foresee clearly where the long-term direction will go.
But serious thinking and a willingness to contemplate radical change will be
necessary,’ King said.

The tone, in his speech to the Bank of Israel, may stoke fears of a crippling
new set of regulations. King said that ‘radical change’ was being contemplated
for Wall Street and the City to combat future crisis.

King said: ‘Much hard thought will need to be given to the structure and
nature of banking regulation in the future.’

His comments reflect on the Financial Services Authority, the primary
regulator, which recently announced its shortcoming regarding the Northern Rock

Further reading:

King warns of ‘radical change’

MPs take on FSA over Northern Rock

facing Treasury grilling over Northern Rock

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