King: Let bad banks go bust

King warned robust reforms were needed to prevent a repeat of the 2007 rescue of Northern Rock, when the Bank was forced to step in, the Times reports. He told peers and MPs that future banking regulators should have the power to order banks to improve the transparency of their operations, even if they were following the letter of the law. Appearing before the joint parliamentary committee, he said the credit crunch had seen banks buying and selling financial products that were "riskier than they were led to believe". He said the rigid, "rules-based" approach of the past had allowe...