King accused of U-turn over central bank bailouts

Speaking before the Treasury Select Committee, the Bank’s governor also says a US-style system involving state intervention in failing banks would help prevent a future crisis. At a Select Committee investigation into financial stability, chairman John McFall accused King of taking a U-turn on BoE bailouts to financial institutions by providing billions of pounds of support to banks without a penal rate. When the Northern Rock crisis broke in September, King defended his decision to charge the Rock a penal rate of 6.75%, saying it was not the role of a central bank to protect private ba...