EXCLUSIVE: Lord Mervyn King on the future of regulation

Author: Edward Price | Published: 7 Jun 2016

One of the many assumptions about bank regulation to be shattered by the financial crisis was that the lender of last resort model was still relevant. The events following 2008 prove that an alternative is needed. Here, speaking exclusively to IFLR, former Bank of England governor Lord Mervyn King explains his solution. 

With reference to his new book The End of Alchemy, and with a keen eye for crises past and policy new, Lord King also examines the nature of bank failures, the complexity of regulation, the prospects for transatlantic regulatory coherence and more. 

You’ve written a fascinating book. How did The End of Alchemy come about?

I suppose it came about because, during the crisis, everyone was talking about who was to blame and it dawned on me that this was an inadequate approach. There was a failure of economic ideas before and during the crisis,...