Queen questions 'lax' bankers
Reports that the Queen criticised bankers yesterday were wide of the mark
Early reports that the Queen criticised central bankers yesterday for "complacency" in the run-up to the 2008 crash were wide of the mark. It transpires that the conversation wasn’t started by the Queen, but by Sujit Kapadia, one of the Bank of England’s financial policy experts.
During a tour of the Bank, he said he wanted to answer a question the Queen had asked at the LSE in 2008 about why no one saw the financial crisis coming that autumn.
"Oh!" said the Queen, looking slightly taken aback, according to The Daily Telegraph.
Kapadia volunteered that the City had got "complacent" because it thought risk was being managed better than it was. He said the financial system had become too interconnected.
The Queen responded: "I suppose, in money terms, it is very difficult to foresee. But people had got a bit lax. Have they?'
She also asked if the Financial Services Authority - the country's primary regulator - "did not have the teeth" to tackle the crisis. She was assured that tough new laws were now in place. Prince Philip told Kapadia: "Don't do it again".