Crisis and crash: lessons for regulation - speech by Michael Cohrs

In a speech delivered in Edinburgh on 23 March 2012, Michael Cohrs – a Member of the Bank’s Financial Policy Committee (FPC) and a Non‑Executive Director of Court, the Bank’s governing body – reflects on the causes and consequences of the financial crisis, the authorities’ response and the changing structure of financial regulation in the UK.

Published on 26 March 2012

Michael Cohrs says “it is clear (in hindsight) that the premise of ‘efficient’ market behaviour, the structure of the banking industry and the regulatory framework were unsuitable prior to 2008”. He acknowledges widespread criticism of the tripartite structure, saying “attention was myopically, and (as it happened) dangerously, focussed on individual institutions”. And “given its lack of levers, even when the Bank pointed out its growing concern about what was going on it had little effect”.

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