In his testimony to Parliament's Treasury Committee in London Today, Bank of England's Governor, Mervyn King backed the proposal by U.S President Obama for restraining the activity of financial institutions calling such radical changes should be implemented to prevent another financial crisis.

King seemingly is on board for radical reform for the financial sector, which has been spinning with lack of governance resulting in the crisis of the century. On Obama's proposal last week to limit the size and trading activities on financial institutions which will rein on risk taking King was quoted saying make very clear that radical reform is on the table, and that is the most important thing.

BoE's Deputy Governor Paul Tucker was also present alongside King and said I quite like Obama's move and acknowledged the spirit of the proposal.