British FM urges shake-up of banking system

British FM urges shake-up of banking system
AFP
Comment E-mail Print Share
First Published: Wed, Jun 17 2009. 10 44 PM IST
Updated: Wed, Jun 17 2009. 10 44 PM IST
London:British finance minister Alistair Darling will demand big changes to banking boardrooms, blaming their poor judgement for the financial crisis that dragged the world into a downturn.
“I strongly believe that the process of learning lessons has to start in the boardroom,” Chancellor of the Exchequer Darling will tell business leaders later on Wednesday according to extracts of his speech released to media by the Treasury.
“Bank boards must have the right people, skills and experience to manage themselves effectively and their focus must be long-term wealth creation, not short-term profits,” Darling will add.
Meanwhile in the United States, US President Barack Obama will unveil financial system reforms aimed at preventing another crisis.
Britain, European Union, Japan and the United States were pulled into a severe recession last year as a result of the worldwide financial crisis and credit crunch.
The crisis erupted in August 2007 as the world’s leading banks stopped lending to each other amid concerns about exposure to complex and opaque investments in the collapsed US subprime or high-risk home loan market.
In the wake of the crisis, Britain’s Labour government was forced to nationalise or take majority control of some of the country’s leading high street lenders that have buckled under the weight of massive losses.
Comment E-mail Print Share
First Published: Wed, Jun 17 2009. 10 44 PM IST