Friday, September 2, 2011
Our role in modern banking
A key Bank of England policymaker has contradicted the public statements of senior bankers by revealing that some privately expect the taxpayer to pick up the tab in the event of another financial crisis. In a paper published yesterday, Paul Fisher, the Bank's executive director for markets, disclosed that "some banks have told us that they think they should not be required to hold capital and liquidity to deal with such extreme tail events â€“ leaving the public sector to be the capital provider of last resort". His comments clash with the public statements of bankers who claim lenders should not be a burden on the taxpayer.