RTTNews - Tuesday, Bank of England's Deputy Governor Paul Tucker said a radical simplification of banks' group structures are needed and also highlighted the need for better information from banks. He said it is important to bring about the kind of regime shift to restore confidence and thrust in the industry without a government prop.
In a speech delivered at the British Bankers' Association Annual International Banking Conference, he said banks should structure themselves to allow orderly wind down and they must invest to offer the authorities with the information they need to do so. He added that social contract for banks must be redrawn.
Tucker said, Going forward, we cannot have a regime where the upside for risk taking goes to shareholders and management, but the downside falls to the general taxpayer. To be clear, we want banks and the financial sector more generally to thrive, he added.
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