Robert Jenkins, the newest member of the Interim Financial Policy Committee (FPC), in a speech released by the Bank of England on Tuesday, said banks had confused return on equity with shareholder value in calculating their profitability.
"We will not abolish greed. We can not outlaw stupidity. But we can and must place prudent limits on leverage," said Jenkins, in his address at the Annual Conference of the International Centre for Financial Regulation in Berlin.
If a bank achieves gains in ret