- There is a need for banks to temporarily raise capital levels due to “exceptional threats”
- Not seeking permanently high levels of capital
- Banks should clarify impact of euro-zone crisis on their balance sheets
- Increase in bank capital has been small
- Must ensure banks in best possible shape to weather euro zone losses
- Problems in euro zone are deep-seated and not one’s UK authorities can resolve
- We do not need an inquiry to know what needs to be done to UK banking system
- Manipulation of libor was “deceitful”
- Many in UK banking system are honest and will feel let odwn by their colleagues and leaders
- We need a real change of culture in UK banking
- We need changes to structure in UK banking
- Hope to announce details of funding for lending scheme “very shortly”
- Won’t comment on insitutions, people
- Will aim for new LIBOR regime based on transactions
- ‘My word is my LIBOR’ is now dead as a system
- Important not to expect too much from regulation
Cable has slipped below 1.5600, not helped by King comments. We’re presently at 1.5580. Talk of sell stops now through 1.5570 and 1.5550.
