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 concerns did King express regarding the moral implications of financial services firms making money from customers?

What potential changes did King suggest might happen to Britain's biggest banks?

What is the 'too big to fail' problem mentioned by King, and why is it significant?

What risks does King associate with the influx of cheap money into banks?

How does King relate the current interest rates to inflation, and what is his stance on raising them?