The governor of the Bank of England, speaking in Washington, has said some very profound things. This blog reproduces the text of the BBC News report
BBC News – Mark Carney says bankers’ behaviour needs to change
Bankers’ behaviour still needs to change following the financial crisis, Bank of England governor Mark Carney has warned.
He said that top executives had “got away without sanction”.
“Maybe they were not at the best tables in society after that, but they’re still at the best golf courses. That has to change,” he said.
Mr Carney was speaking at the International Monetary Fund’s annual meeting in Washington.
The governor’s warning comes amid a radical reshape of the industry aimed at limiting the impact of any future bank collapses.
Banks will have to ensure retail customers’ deposits are protected and kept separate from their investment arms by the start of 2019.
UK financial institutions were told last week that they must submit their plans, detailing the legal and operating structure of their planned ring-fenced banks, by the end of the year.
New laws also mean that bankers found guilty of “reckless misconduct” could face jail.
Banking bailouts
Mr Carney suggested if senior bankers were unhappy with the changes, then they should resign.
“If you’re chair of an audit committee, you have responsibility for the activities of an institution. And if you don’t think you can discharge that responsibility, you shouldn’t be on that board.”
Mr Carney’s warning followed a separate speech on plans to avoid any further taxpayer bailouts of big banks, which he said would reach a “watershed” at next month’s G20 summit in Australia’s Brisbane.
“The world’s largest banks threatened the stability of the global financial system. Their bailout using public funds undermines market discipline and goes to the heart of fairness in our societies. This cannot be allowed to continue,” he added.
Separately, in an interview with US news channel CNN on Monday Mr Carney said weakness in the eurozone had been a major theme at the IMF meeting in Washington.
“The only difficulty that is caused by Europe is that it provides an additional drag on growth. But that doesn’t dictate the monetary policy of the Bank of England,” he said.
