Bank of England governor Mervyn King says banks are in denial about the public anger that exists over their behaviour during the financial crisis.
In an interview with The Times, he says anger against the banks is “very real and wholly understandable”.
He adds: “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. My duty was to the United Kingdom economy as a whole and not just to one part of it.”
Accusing financial institutions of double standards, King says the banks lectured everyone else on the need to live with market disciplines until the financial crisis hit and then they asked for bailouts.
He says: “Market discipline can’t apply to everyone except banks.”