Bank's Tucker warns that we can not afford to have banking semi socialised

(Source: Reuters)

Deputy governor for financial stability at the Bank of England, Paul Tucker, has warned that ending Too Big to Fail (TBTF) is essential, speaking at the ninth World Congress of the International Association of Restructuring, Insolvency and Bankruptcy.

Tucker stressed that making progress on resolution is required to solving the problem of TBTF:

If you believe in an international financial system that is not only free but also safe, in shielding taxpayers from the risks in banking, and in shielding banking from politics, you will be committed to making a success of resolution.

...

In short, there is no alternative to submitting banking and its investors to the disciplines of capitalism – failure as well as success. We cannot afford to have banking, so central to the allocation of capital in market economies, semi socialised.