Banks lending was foolish

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It is no good speculating now, precautions need to be taken, and lending needs to resume for the economy to correct itself. Banks may have been slightly foolish in the past, but there will be a lot more difficult decisions to make in the future.

Banks lending was foolish

Liberal Democrat Shadow Chancellor Vince Cable says one of the UK’s top bank chiefs admitted to him two years ago that his bank’s lending practices were “foolish and dangerous”.

Speaking at this year’s Council of Mortgage Lender’s annual conference in London today, Cable said the admission came after a dinner two years ago from the chief executive of one of the banks which is now part-nationalised.