Mervyn King warns of possible financial crisis

Mervyn King, the Governor of the Bank of England, discusses the moral and regulatory challenges facing Britain's banking sector. He highlights the unresolved 'too big to fail' issue and the potential for another financial crisis due to growing imbalances. King also addresses the risks associated with cheap money being injected by central banks and the ongoing debate over interest rate policies amid rising inflation.

What new responsibilities will Mervyn King soon have?

• Controlling the national budget

• Overseeing the entire banking sector's rules and regulations

• Setting interest rates only

• Managing the stock market

What is one potential change for Britain's largest banks?

• Focusing solely on retail banking

• Becoming government-owned

• Splitting from their investment arms

• Merging with international banks

What unresolved issue does King highlight regarding banks?

• Too big to fail problem

• Lack of customer trust

• High employee turnover

• Insufficient technology

Why is King criticized for keeping the interest rate low?

• It causes inflation to rise

• It discourages foreign investment

• It leads to increased savings

• It reduces bank profits

What is King's stance on raising interest rates?

• He plans to raise them immediately

• He believes it should be done cautiously

• He thinks they should be lowered further

• He has no opinion on the matter