The Treasury Select Committee was on particularly supine form when half of the Monetary Policy Committee came to give evidence this morning, writes Chris Giles of the Financial Times, allowing Mervyn King and Pauol Tucker to paper over their differences on banking regulation. Read more
Giving evidence at the Treasury Select Committee, Mervyn King, Bank of England governor, has just repeated his view that “banks that screw it up should be allowed to fail”.
You can see why. The Bank has also just revealed a few minutes ago that it engaged in secret emergency lending to RBS and HBOS at the height of the crisis last year. £61.6bn was lent between 1 October 2008 and 16 January 2009. These huge sums kept cash machines open. The alternative was very scary. No wonder King hates the banks so much.