At the height of the financial crisis, Governments authorised a massive injection of public funds to rescue ailing private financial institutions in order to prevent a collapse of the financial system. There was general agreement of the need to minimise the risk of this re-occurring both because of the cost to the public purse, and because, for many commentators, the implicit assumption that Governments will step in to support private financial institutions that are simply ‘too important to fail’ will drive excessive risk taking such as that which created the crisis.
As part of the inquiry the Committee held the following evidence sessions. To access the transcripts for these sessions please click on the link at the top of this page.
19 January 2010
Witnesses: Professor Charles Goodhart, Programme Director, Regulation & Financial Stability, Financial Markets Group and London School of Economics Professor Emeritus of Banking and Finance, and Professor John Kay, Visiting Professor of Economics at the London School of Economics and a Fellow of St John’s College, Oxford
26 January 2010
Witnesses: Mervyn King, Governor, Paul Tucker, Deputy Governor - Financial Stability, and Andrew Haldane, Executive Director, Financial Stability, Bank of England
9 February 2010
Witness: John Varley, Chief Executive, Barclays
22 February 2010
Witnesses: E. Gerald Corrigan, Managing Director, Goldman Sachs; Douglas Flint, Group finance Director, HSBC
23 February 2010
Witness: Alfredo Saenz, Vice Chairman and Managing Director, Santander
2 March 2010
Witness: Lord Turner, Chairman, Financial Services Authority
4 March 2010
Witness: Baron Alexandre Lamfalussy