BoE’s Tucker: banking social contract needs reform
All three elements of the social contract for banking need to be reformed - and it will not be cheap, said Paul Tucker, the deputy governor for financial stability of the Bank of England.
Tucker said a new regime for resolving bank distress was needed. He said that banks should structure and run themselves in such a way as to permit an orderly wind down. He said that they also must provide the necessary information to ensure that an orderly wind down would be possible.
He said that this
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