LONDON (MNI) – Bank of England Deputy Governor Paul Tucker has
refused to comment on the ongoing eurozone sovereign debt crisis.
“In my position, I think that it would be wrong for me to comment
on that,” Tucker told an audience here.
Speaking at a ‘Reform’ think-tank conference on the future of
financial regulation, Tucker said that new regulatory instruments are
needed “so that the authorities can take away the punchbowl before the
party gets completely out of control in the future.”
“The global financial crisis occurred in an environment of large
global macroeconomic imbalances, largely because the “rules of the game”
for the financial system had not kept up with the evolution of global
capital markets and how they interact with banking,” Tucker said.
Tucker said that a new architecture for macro-prudential
supervision and regulation needed to be created so that authorities do
not fall behind market players.
“The authorities need to ensure that banks hold more capital and
that, when distressed, banks and other firms can be resolved in a more
or less orderly way without taxpayer solvency support,” he added.
–London bureau: +4420 862 7499; email: wwilkes@marketnews.com
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