HSBC warns bail-outs may promote City recklessness - papers

Michael Geoghegan said the conservative policies followed by his bank in recent years, which were criticised by some shareholders, had provided a solid base to weather the financial storm. He said rival banks had taken risks and been punished by the markets - only to be rescued by the government's £37bn package. He said: "I hope these guarantees are not in place for too long. They may create the wrong type of behaviour by managements in those banks." THE US GOVERNMENT ripped up its eight-week-old rescue deal for AIG and signed a new $150bn (£96bn) plan that it hopes will be more likely ...