Queen questions 'lax' bankers

Dec 14, 2012

Reports that the Queen criticised bankers yesterday were wide of the mark

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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".

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The question put by HM and the comment of HRH were 100% spot on. The function of the FAS is to control and it failed totally. In the past, a racking in the Tower before heads off would have been though too mild for the damaged inflicted to millions and the nation by their laxness.