He admitted there is a risk that billions of pounds will be lost by the two embattled banks.
Perhaps more worrying, he said the bank's base interest rate, recently slashed in an attempt to kickstart borrowing, was a 'blunt instrument' - and new tools were needed to help steer Britain through the crisis.
New 'policy instruments' were being discussed, which would 'make it expensive for banks to expand rapidly in the upswing', he said.
http://www.dailymail.co.uk/news/article-1099662/We-saw-crazy-mortgages-failed-spot-dangers-debt-Bank-chiefs-startling-admission-financial-crisis.html
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