Has there been a fall out at the Bank of England?
Mervyn King has effectively been cut adrift by fellow members of the monetary policy committee of the Bank of England with news that at least one member is not willing to back his program to break up the larger UK banks. The Gov of the Bank of England has been under pressure for some time after numerous disagreements with the UK government as well as some fellow members of the monetary policy committee. So where does this leave Mervyn King?
It is widely known that Mervyn King has not been one of the more well liked Governors of the Bank of England although ultimately he says it how he sees it, which in the eyes of traders and economists is exactly what they want to see. However, his constant bickering with the UK government and now the revelation that not all members of the MPC would follow his recommendation regarding UK banks has in many ways left him adrift.
The only positive news on the horizon for Mervyn King may well be the likelihood that a Conservative government will win the next general election, a party which he appears to be growing closer to and from whom he can expect support in due course. Whether his controversial, and often aggressive, approach to the UK banking system and the regulatory framework will go down well with the next government of the UK remains to be seen.
Share this..
Related stories
Can Labour afford to keep increasing investment in public services?
In many ways the Labour Party has made a rod for its own back as public spending investment has been one of the central planks of both new Labour and old Labour. This is one of the areas of investment which differentiates the Labour Party from the Conservative party and even though Alistair Darling and Gordon Brown are well aware that investment should be cut in the public sector they very much ha...
Read MoreSnow costing UK economy £600 million a day
It is estimated that the snowy weather in the UK is costing UK businesses £600 million a day at a time when few businesses can afford to give away trade. A mixture of staff absence numbers and missed trade is beginning to add up and becoming a major concern for the UK government. It is no secret that many small to medium-sized businesses (and a few larger businesses) are literally trading on a...
Read MoreWhat can we do to ensure that the credit crunch does not occur again?
The short answer is that we must all live within our means even if there is temptation to spread your wings and take on a little more debt that you feel comfortable with. We also need to understand that just because we have missed out on the start of an investment boom, in whatever asset class, it does not mean that we have to chase prices higher and higher.
However, there are many...
Lloyds Bank surprises City with a warning
Lloyds Bank today warned the City that corporate bad debts at the group are expected to soar by around 50% this year but more worryingly, the company has yet to finalise its participation in the government's insurance scheme for toxic assets. Many were under the impression that Lloyds Bank was already confirmed as a member of the scheme but today's announcement would appear to indicate otherwise.<...
Read MoreRate hike prospect sinks in
Borrowers and mortgage-holders are taking in the prospect of another rise in interest rates later this year.The Bank of England's quarterly inflation report gave a clear indication yesterday that another hike would be needed to bring inflation down to chancellor Gordon Brown's two per cent target in the next two years.With analysts concluding the report represents a clear warning to the markets of...
Read More