Bank of England Governor Mervyn King told the House of Lords Economic Affairs Committee on Tuesday that bank regulations should be reformed so as to remove the implicit guarantee provided to big banks that undertake risky assets, else demand for gilts would be hit. King said, "It would be a serious mistake for us to rely on the rest of the world solving this problem." "In the end, if we don't solve this problem people who buy gilts around the world will say the UK is a bit of a risk."
US has a big advantage here as they can afford to let too-important-to-fail go on because their banking sector is less than one times GDP.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.