FSA Chief Executive Warns of 1990s-style Recession (Video)

According the Chief Executive of the UK's Financial Services Authority the banks need to prepare for a 1990s-style recession. The warning was made public in a BBC interview which can be viewed in this article:

news.bbc.co.uk...

Hopes that the global crises may be short-lived have clearly been given a severe dousing.

Let's hope it's only 1990's style depression. I see a lot of factors in play right now that weren't a problem then. Where's the backstop on that?

I like this part of the article"

news.bbc.co.uk...

Bank bonuses blamed

Mr Sants said part of the cause of the economic mess was that bankers had been rewarded for taking foolish risks.

And he warned that if banks continued to reward their employees for doing dangerous deals, the watchdog would make sure that banks and their shareholders would be penalised.

Too bad the US is not doing the same thing.

[edit on 8/9/2008 by Relentless]

And here comes the Chancellor of the Exchequer to back him up. Except he's talking about something more severe than the 1990s...

The UK is facing its worst economic crisis in 60 years, Chancellor Alistair Darling has admitted.

He told the Guardian newspaper that the economic downturn would be more "profound and long-lasting" than most people had feared.

Source: news.bbc.co.uk...

You really have to wonder why the US is not saying the same thing. It's just as bad here.

Keep us posted as this evolves!