LONDON (AP) -- The new governor of the Bank of England says the world's economic recovery is entering a new phase and that more reforms are needed in the financial sector to prevent another crisis.
Mark Carney says reforms in domestic banking that followed the start of the 2008 financial crisis are insufficient for a global hub like London. Carney told a gathering in the capital that institutions besides banks should be reformed.
He says international regulators need to protect taxpayers from having to rescue banks that are too big to be allowed to fail with endangering the entire financial system.
Carney said fairness "demands the end of a system that privatizes gains but socializes losses." This is important in Britain, where banking assets are now four times the size of the economy.