Britain's Queen seeks answers for financial crisis

LONDON Fri Dec 14, 2012 6:11am IST

LONDON (Reuters) - Britain's Queen Elizabeth put central bankers on the spot when she quizzed them about the errors that led to the financial crisis in a rare public intervention during a visit to the Bank of England on Thursday.

She asked whether complacency was a factor and if the financial watchdog lacked teeth, touching on a sensitive debate that has raged since the near collapse of the banking system and triggering widespread attention in the British media.

The 86-year-old monarch avoids entering political debate, but four years ago pointedly asked academics why nobody had foreseen the crisis, which forced Britain to rescue leading banks, stoked a record budget deficit and sent the economy into recession.

Bank of England staff attempted to answer her inquiry during her visit, giving a technical explanation that prompted the queen to explore the subject further.

"I suppose in money terms it is very difficult foreseeing (things). But people had got a bit ... lax?" she said, before agreeing with an official that the real problem could have been "complacency".

She asked whether the bank regulator at the time lacked the powers it needed, reflecting plans to abolish the Financial Services Authority and divide its responsibilities between the Bank of England and a new watchdog.

"It was really quite new, wasn't it? But it didn't have any teeth or something?" she asked in comments captured in television footage of the visit.

The central bank team giving the Queen an account of the crisis were introduced to the monarch by an official as "some of the staff who hopefully will spot the next one coming".

Her 91-year-old husband, Prince Philip, also on the visit and fond of making off-hand quips, prompted nervous laughter when he responded: "There isn't another one coming, is there?"

(Reporting by Tim Castle; Editing by David Brunnstrom)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared
The Wipro campus is seen in Bangalore June 23, 2009. REUTERS/Punit Paranjpe/Files

Wipro Q4 net profit beats estimates, rises 29 percent

Wipro posted a 29 percent rise in its fourth-quarter net profit, beating expectations, helped by increased IT spending by its customers. For the quarter ended March 31, the company said it earned 22.27 billion rupees compared with 17.29 billion rupees a year earlier..  Full Article | Full Coverage 

REUTERS SHOWCASE

Election 2014

Election 2014

India holds biggest day of voting with BJP gaining strength  Read | Full Coverage 

Market Eye

Market Eye

Sensex jumps 351 points, snaps 3-day losing streak  Full Article 

S&P on India

S&P on India

S&P: India's ratings to depend on next govt econ, fiscal policies.  Full Article 

Ambitious Aim

Ambitious Aim

In green car race, Toyota adds muscle with fuel-cell launch.  Full Article 

Deal Talk

Deal Talk

Piramal to buy 20 percent stake in Shriram Capital for $334 million.  Full Article 

Bond Market

Bond Market

A star abroad, RBI boss riles bond traders at home  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage