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Deputy governor says Bank of England ‘can do a lot better’

The Bank of England deputy governor Paul Tucker has claimed the bank “can do a lot better” job in regulating the financial system.

Tucker’s comments come ahead of the first meeting of the Bank’s new Financial Policy Committee on Thursday. It has been tasked with preventing banks taking on too much risk, which could lead to repeat of the crisis in 2007-08.

Speaking to the BBC, Tucker said: “We can do a lot better job than we did in the past. There were warnings, from this institution, some from the FSA, many from abroad, and yet no one picked up the warnings are ran with them.”

The FPC, meets four times a year and is chaired by BoE governor Mervyn King. The committee also includes some external experts.

Tucker said: “Can we promise it’ll never happen again over 100 years, 150 years? No it would be silly for me to say that,”

“But can we do a much better job than happened in this country over the last 15 or 20 years? Yes we can,” he says.

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  1. Julian Stevens 15th June 2011 at 9:12 am

    It would be mildly refreshing to hear a similar admission from Hector Sants, rather than on the one hand calling endlessly for more money whilst on the other bludgeoning the industry with a positive tsunami of new regulatory initiatives.

    BTW, it occurs to me to ask if the FSA’s planned operating costs of £500m for the current year include all the fines it’s dished out ~ or are they separate and additional? How much will actually be levied on the industry?

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