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 \u201d\u201c six years after the financial crisis.<\/p>\n
\u201cThe elephant in the room is that banks are still too big to fail,\u201d\u009d Justin Welby said in a speech to the New City Agenda group at the House of Lords on Tuesday. \u201cIt is going to take some time to fix this and I hope it will stay front and centre of people\u2019s minds.\u201d\u009d<\/p>\n
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.<\/p>\n
The archbishop resisted this idea. \u201cIf 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: \u201d\u02dcNo, we are not going to put a penny into this\u2019?\u201d\u009d<\/p>\n