Edeus chief executive Michael Bolton has called on the Chancellor to resign over his handling of the Northern Rock crisis and has lashed out at the Bank of England.
He says the decisions of the Chancellor and the Bank of England have cost UK shareholders £5bn.
Bolton says: “The Chancellor should resign over this. I am amazed there is not a demand for his head.”
Speaking to Money Marketing, Bolton brands the Bank of England as a puppet of politicians and accuses it of sitting on the sidelines for seven weeks.
He says: “The Treasury and the Bank of England were sitting on their hands up to last week. After seven weeks of inaction, the bank has been forced to move by its political masters, bringing welcome relief to the three-month money market.
“The fire in this market was lit on August 8 and on Monday morning we faced a very real prospect of not just a run on one bank but also several other banks.”
Bolton claims the Bank of England acted last week because Labour politicians were beginning to get nervous about losing the next general election and the whole fiasco would not have occurred if the bank had acted two weeks earlier.
For full interview, see Mortgage Brief in this week’s Money Marketing