The Governor of the Bank of England, Mervyn King, says it was right not to intervene too early in the UK banking crisis, which resulted in Northern Rock borrowing over £20bn of public money.
King also revealed the Chancellor could have agreed to lend money to Lloyds TSB to buy out Northern Rock, which may have prevented the crisis. Speaking to a BBC Radio programme, King says he felt he did the right thing by not bailing out banks that were in trouble early in the crisis. He says: "I think we did feel strongly that it would not be right to bail out imprudent banks - we didn't do that - and we had to take action to protect not the managers not the shareholders but the retail depositors - and so far no retail depositor in this country has lost a penny in this episode." King al...
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