Ex-chancellor admits government ‘lost control’ for a few days 10 years ago and says people have felt ‘badly treated’ since
The UK would not have voted for Brexit had it not been for the banking crisis which began 10 years ago with the run on Northern Rock, according to the former chancellor Lord Darling.
Darling admitted the Labour government “lost control” for a few days at this time 10 years ago when customers were queuing outside branches of the lender to withdraw their cash, and said the consequences were still being felt today.
Related: UK’s high street banks are accident waiting to happen, says report
Ex-Treasury mandarin Lord Macpherson is right to compare QE to heroin – it required ever bigger doses to get a high
Things have moved on in the civil service since the days of Yes, Minister. Back then senior civil servants remained the soul of discretion even after retirement. When Sir Arnold Robinson has advice to give to his successor, Sir Humphrey Appleby, he does it over lunch at a Pall Mall club.
Lord Macpherson, until recently the Treasury’s top mandarin, has some advice for the current government: it’s time to move on from quantitative easing, the scheme that has been pumping electronic money into the economy since early 2009.
Former chancellor reveals his scariest moment of the financial crisis was when he took a call from RBS chairman and asked how long the bank could last
Alistair Darling has revealed his “most scary moment” of the financial crisis which began a decade ago.
The former Labour chancellor of the exchequer said he received a shocking phone call from Royal Bank of Scotland in 2008, revealing a run on the bank.
Key players in the drama recall the day that sparked the first UK bank run in 140 years and heralded a global financial crisis
The ninth of August 2007 was the first day of Mervyn King’s holiday. The governor of the Bank of England spent it at Lord’s cricket ground where he was interviewed by the former England cricket captain Michael Atherton. While Lord King was watching the cricket, the French bank BNP Paribas announced it was freezing the assets of hedge funds that were heavily exposed to the US sub-prime mortgage market.
It was the first and last day of King’s holiday. He would not have another for several years. Within six weeks, members of the Bank’s court – its oversight body – were being whisked into the back entrance of Threadneedle Street in a people carrier with blacked-out windows to be told that money was haemorrhaging out of Northern Rock.
The Big Short explains the role of top bankers in the 2008 crash, but nothing much has changed
The UK release this week of the Oscar-nominated The Big Short, based on Michael Lewis’s book of the same name, is a fitting bookend to a time when we still believed that the broken financial system might be fixed. But the banks have won. Not a single “top banker” has been jailed and few, if any, have had to return undeserved bonuses. Measures taken since 2008 are being watered down before our eyes and, most dangerous of all, the deeper causes of the crash remain essentially intact. The Occupy movement should call a reunion so we can have a ceremony to bury all remaining hope.
Related: The Big Short review – Ryan Gosling and Christian Bale can’t save this overvalued stock
In the new set-up of the 80s and 90s bonuses stayed but the risk of being ruined personally was quietly shelved