Wednesday, September 10, 2008
Steady Eddie (George) former BOE chief now telling us that UK is “fundamentally sound”
Former Bank of England governor Edward George says the response to the Northern Rock crisis was well judged but further regulation risks strangling the financial system. In a new pamphlet from think tank Politeia titled Banking on Stability, Lord George explains what has happened to the financial world and what course is best to restore financial stability.According to the former governor, the official reaction to Northern Rock was well judged to calm the system without setting a dangerous precedent. He says the system itself has adjusted and is fundamentally sound but warns that further regulation risks throttling the system: “The buck, must stop with management and shareholders” he says.