Deputy BoE governor speaks about crisis

The deputy governor of the Bank of England, Sir John Gieve, has recently commented on the financial crisis in the UK, and has slammed both the financial regulator, the Financial Services Authority, and the Prime Minister, Gordon Brown, over their handling of the situation.

Sir John attacked the tripartite system that was set up by Gordon Brown in 1997 to handle the economy, and said that the efforts of those that formed the system, which is the Treasury, the FSA, and the Bank of England, had failed to improve the crisis that has hit the banking industry and the financial markets following the onset of the global credit crunch in late 2007.

He also commented on the outlook for Britain, and shocked interviewers by predicting that the nation could be heading for a period of deflation similar to the one seen in Japan in the 1990s. He said: ‘There is a risk and that’s why rates have been reduced here and across the world. There is a serious risk.’

Sir John is stepping down as deputy governor of the central bank after three years, and officials said that his speech was a direct attack on the system that was set