Loss of income caused by banks as bad as a ‘world war’, says BoE’s Andrew Haldane

By Philip Aldrick, Economics editor

6:00PM GMT 03 Dec 2012

Andy Haldane, the Bank’s executive director for financial stability, added that public anger at the banks was fully justified and that pay in the industry remained too high.

“In terms of the loss of incomes and outputs, this is as bad as a world war,” he said. “It would be astonishing if people weren’t asking big questions about where finance has gone wrong.

“If we are fortunate, the cost of the crisis will be paid for by our children. More likely it will still be being paid for by our grandchildren. There is every reason why the general public ought to be deeply upset by what has happened – and angry.”

Four years since the crisis struck, the economy is still 3pc smaller than at its peak. The scale of the problems will be exposed again on Wednesday when the Chancellor updates the country on the economic outlook and his austerity plans.

via Loss of income caused by banks as bad as a ‘world war’, says BoE’s Andrew Haldane – Telegraph.

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