King admits UK likely to enter recession

Speaking in Leeds last night, King says the financial turmoil following Lehman’s failure last month pushed the banking system closer to collapse than any time since World War I. His comments sparked a dramatic tumble for the pound, which this morning hit a five-year low against the US dollar. The governor says the UK Government and counterparts from all over the globe needed to take decisive action to bring urgent stability to the system. Following the Government's bank rescue package, King says the UK taxpayer now has a larger claim on the assets of banks – in collateral held by the ...