The Archbishop of Canterbury has warned that the impetus for reforming the banking system is fading, even though taxpayers risk having to bail out the biggest banks ”“ six years after the financial crisis.
“The elephant in the room is that banks are still too big to fail,” Justin Welby said in a speech to the New City Agenda group at the House of Lords on Tuesday. “It is going to take some time to fix this and I hope it will stay front and centre of people’s minds.”
Mr Welby, who was an outspoken member of the parliamentary commission on banking standards, was asked by a JPMorgan Chase banker in the audience if the wave of banking regulation since the crisis had removed the risk of a taxpayer bailout.
The archbishop resisted this idea. “If JPMorgan had to go into insolvency, are we seriously saying it would not cause a systemic crisis? Do we really think the US government would say: ”˜No, we are not going to put a penny into this’?”
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(FT) Archbishop of Canterbury warns banks are still ”˜too big to fail’
The Archbishop of Canterbury has warned that the impetus for reforming the banking system is fading, even though taxpayers risk having to bail out the biggest banks ”“ six years after the financial crisis.
“The elephant in the room is that banks are still too big to fail,” Justin Welby said in a speech to the New City Agenda group at the House of Lords on Tuesday. “It is going to take some time to fix this and I hope it will stay front and centre of people’s minds.”
Mr Welby, who was an outspoken member of the parliamentary commission on banking standards, was asked by a JPMorgan Chase banker in the audience if the wave of banking regulation since the crisis had removed the risk of a taxpayer bailout.
The archbishop resisted this idea. “If JPMorgan had to go into insolvency, are we seriously saying it would not cause a systemic crisis? Do we really think the US government would say: ”˜No, we are not going to put a penny into this’?”
Read it all.