“The world’s biggest banks still could not be dismantled safely, more than five years after the collapse of Lehman Brothers, the Bank of England’s deputy governor for financial stability said on Monday.
“International standard setters have made progress in reforming banking rules since Lehman went under in September 2008, Jon Cunliffe, the deputy governor, told a Chatham House financial conference. But the core task of ending too-big-to-fail banks remains, he said.
“He urged the European Parliament to approve a new European Union law that would give national regulators the powers to wind down ailing banks.”
“Robert Jenkins, a former member of the BoE’s Financial Policy Committee, which sets the tone for UK regulation, said a global standard is desirable if it is sufficient to the task.
“But if the agreed global standard is insufficient, then national authorities not only might but should deviate in order to protect their taxpayers,” Jenkins told Reuters. The U.S. initiative bolsters a global set of bank capital rules known as Basel III, which Jenkins said are insufficient.”
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