The BBC’s Today programme had the ex-governor of the Bank of England, Mervyn King, on as guest editor (08:55)….and used the occasion to try and rewrite the history of the financial crash by whitewashing Labour’s part in it.
King was asked about the crash and then led into the trap, Naughtie quietly asking about ‘the whole argument that there was light touch regulation that was in retrospect a terrible mistake’.
King, trying to be politically neutral, and no doubt partially to save his own reputation, at first said it had nothing to do with regulation but then admits it had everything to do with it saying the banks’ leverage was ‘absurdly high’….in other words they had been allowed to borrow vast sums at high risk..he goes on ‘we should learn the lesson from that in the future’.
Naughtie then tries to pass the blame onto the Bank of England….King says the Bank didn’t have responsibility for the regulations….so the regulation, the lack of, was crucial then….who did have responsibility? The government…the Labour government.
Justin Webb then jumps in at the end of the interview and persistently tries to get King to say the Coaliton’s ‘Help to buy’ scheme was ‘unwise’…apparently it is a personal concern of Webb’s.
So whitewashing Labour and maligning the Coalition. Just another day on the leftwings’ favourite political programme.
Must be an election coming.