Spending cuts: King blames banks for financial crisis

2nd March 2011

The Guardian reported that when addressing the Treasury select committee on Tuesday King had said the need for public spending cuts was entirely the fault of the financial services sector.

King said: "The price of this financial crisis is being borne by people who absolutely did not cause it," he said. "Now is the period when the cost is being paid, I'm surprised that the degree of public anger has not been greater than it has."

King also warned that the impact of the crisis could not be compared with an ordinary recession and it may be the UK economy would never completely

The Daily Mail's website This is Money reported King as saying he had every sympathy with families whose livelihoods have been 'destroyed'. He also said banks were crippling small and medium-sized businesses.

"There is no doubt that anyone who goes round the country and meets small and medium-sized businesses meets a lot of people who feel that they have been denied access to credit," he said.

He said unemployment, which stands at 2.5m, was not likely to come down easily or quickly. .

He said there will be a 'radically different approach' to supervising banks when the Financial Services Authority is broken up .

He said the main weaknesses of the FSA included its inability to confront powerful bank bosses and its tendency to miss the big picture.

On the Guardian website some readers were using King's comments to recommend direct action

Bluecloud said: "Re: protests on March 26th, why wait? Protest now. Regarding kettling, they cannot kettle the whole country. BTW. You know the old adage: Don't get mad, get even."

Tyke63 added: "Where is  BOB COVERED IN DIAMONDS , when you need him for a quote about being hard done to. We should deport them to somewhere corrupt,!!! maybe the city of London or Westminster, oh b****r  they are already there!!"

Bluecloud adds: "Barclays paying 1% in corporate tax is all you need to know. Close your bank accounts folks. That'll screw 'em."

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