Bank of England governor calls for banks to be split into separate utility companies and risky...

By Michael Hennigan, Founder and Editor of Finfacts Bank of England governor Mervyn King, arrives in Berlin for the EU economy summit, 22 February 2009. Bank of England governor, Mervyn King, on Tuesday night called or banks to be split into separate utility companies and risky ventures, saying it was “a delusion” to believe tougher regulation would prevent future financial crises. Last week, ECB president, Jean Claude Trichet told banks to return to their “traditional role of providing a service to the real economy,” saying they have focused too much on“unfettered speculation and financial gambling.” SEE: Finfacts article Oct 16, 2009: Trichet warns on "financial gambling"; Says banks should return to “traditional role of providing a service to the real economy” Nevertheless, both central bankers appear to be sailing against... [read full story]                    

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