King: Banks in denial over role in crisis

13 March 2012

Major British banks are refusing to accept responsibility for their role in the recession and are failing to take action to repair the damage they caused.

That is the opinion of Mervyn King, governor of the Bank of England, who has accused the country's financiers of refusing to accept there is a clear need for the current system in the sector to be reformed.

During an interview with The Times published yesterday (12 March), the official stated that such companies still blame him for not offering them greater levels of support during the downturn and are therefore in denial about the necessity for change.

"I think it is because they found it very, very difficult to face up to the failure of their banking model. That model needs to be restructured," he noted.

Mr King went on to say it is important for financiers to realise that "market discipline can't apply to everyone except banks".

By Gary Cooper

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