Tuesday, March 4, 2008
What was that thing about prudence?
The Chairman of the Treasury Select Committee, John McFall, has told Sky News he thinks the worst is still to come in the global credit crunch. Speaking on the Jeff Randall Live programme, he said a spell of "collective madness" had seen the banking industry ignoring risks and making investments they simply did not understand. Mr McFall said: "We've been consumed by greed. The banks have been investing in things they don't understand. "They've had young whizz kids to devise these complex products. "The investor has also thrown caution to the wind. The result is that we could be talking about one trillion dollars in writedowns because of this."