Bank of England warns credit crisis to worsen
The Bank of England’s chief economist, Charlie Bean, has warned that the impact of the credit crunch on the banks may only be the tip of the iceberg, banks may reveal greater losses.
“It is quite likely that, over the coming months, there will be more revelations to come out, not necessarily just in this country,” he added.
The message from Mr Bean comes after Goldman Sachs warned earlier this month that sub-prime mortgage losses could force banks to slash lending by $2,000bn (£980bn) and push the United States into a deep recession. Mr Bean said that the immediate future would be characterised by “lots of volatility” and said that it would be “quite a long time before things come back to a full state of normality.”
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