Lord King, former Bank of England governor, says global banking system 'not safe'

Lord Mervyn King, has increased his criticism of global banking regulation, saying not enough was done after the
2008 global financial crisis (GFC) to ensure banks would not collapse should the economy or markets go pear-shaped.

Key points:
  • Lord King says there's "plenty of scope to rethink" banking regulation
  • He thinks more should be done to prevent another banking crisis
  • High debt levels, mispricing of geopolitical risk causes for concern

"That was the thing, which in October 2008 caused a critical failure of the banking system and financial system in New York, so there is
plenty of scope to rethink what we have been doing," he said.

Low market volatility is 'very worrying', Lord King says

Lord King said he does not believe there is any imminent threat of an event that would spark a run on banks, or that the immediate
threat to the world or financial system will emanate from banks — but that does not excuse the lack of preparedness.

What will bring down the world will be either the extraordinary levels of private and government debt and/or markets'
serious mispricing of geopolitical risk, according to Lord King.

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