Updated Thursday, September 13, 2007 0:00 am TWN, AP

Bank of England's King refuses to bail out banks

LONDON -- Bank of England Governor Mervyn King stood firm against bailing out struggling banks on Wednesday, but hinted that interest rates had reached their peak as he made his first comments since the credit crisis swept global markets. King said that the mispricing of risk in the financial system, rather than the state of the world economy, was the source of ongoing market problems.

“If risk continues to be underpriced, the next period of turmoil will be on an even bigger scale,” he said in written testimony to the British Parliament’s Treasury Committee.

 

 

 

 

 

 

 

 

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