Sir Mervyn King: no recovery until banks recapitalise

From telegraph.co.uk

Raising the prospect of rights issues or even another taxpayer bail-out for the state-backed lenders Royal Bank of Scotland and Lloyds Banking Group, Sir Mervyn King said UK banks have “insufficient capital” to protect against undeclared losses on their books. He also ruled out suggestions that the Bank should try to boost growth by simply giving the public cash or cancelling the government debt it has bought through quantitative easing (QE). Warning that the next generation may have to live with the consequences of past excesses “for a long time to come”, he said Britain’s banks needed to drop the ... (full story)