Bank of England King Says He’s Concerned Over Bailed-Out Banks’ Move to Trading

Discussion in 'Wall St. News' started by ASusilovic, Nov 24, 2009.

  1. Nov. 24 (Bloomberg) -- Bank of England Governor Mervyn King said he’s concerned that some banks receiving taxpayer-funded bailouts are too eager to return to investment banking.

    “I have in one or two instances been concerned that banks, particularly those in receipt of government support, felt that it was more attractive to go down the road of re-establishing an investment-banking operation as opposed to what I thought their intention originally was, which was to go back to some good old- fashioned commercial banking,” he told lawmakers today.

    Banks are seizing on the biggest financial crisis since the Great Depression to buy assets and lure staff from rivals to create global investment firms. Royal Bank of Scotland Group Plc, which has been rescued by the world’s most expensive bank bailout, is “moving away from the hubris that characterized the last decade” as it seeks to serve its customers and allow the U.K. to sell its controlling stake at a profit, Chief Executive Officer Stephen Hester said yesterday.

    Barclays Plc is currently returning to European share trading, a business it abandoned 12 years ago, after the takeover of Lehman Brothers Holding Inc.’s U.S. units.

    ROFL ! LMAO ! :D
  2. So concerned that he is...saying he is concerned and not doing a thing. What more to say!

  3. King should have stayed with his "No rate cuts until 2010" call from 2008 :cool:
  4. [​IMG]


    They are not far away...:p