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		</div><p><a href="http://londonglossy.com/wp-content/uploads/2011/03/uk-risks-fresh-financial-crisis.jpg"><img class="alignnone size-full" title="Mervyn King said the UK could suffer another financial crisis" src="http://londonglossy.com/wp-content/uploads/2011/03/min-uk-risks-fresh-financial-crisis.jpg" alt="Mervyn King said the UK could suffer another financial crisis"/></a></p>
<p>Britain risks suffering another financial crisis unless fundamental reforms of the banking sector are pushed through, the Governor of the Bank of England has warned.</p>
<p>Mervyn King said problems still remained and &#8220;imbalances&#8221; in the system were &#8220;beginning to grow again&#8221;.</p>
<p>He also urged high-street banks to take a longer-term approach to their business and not simply try to &#8220;maximise profits next week&#8221;.</p>
<p>The intervention, in an interview with the Daily Telegraph, comes as a Government commission is considering whether financial institutions should be forced to separate retail and investment banking arms.</p>
<p>&#8220;We allowed a (banking) system to build up which contained the seeds of its own destruction,&#8221; Mr King said. &#8220;We&#8217;ve not yet solved the &#8216;too big to fail&#8217; or, as I prefer to call it, the &#8216;too important to fail&#8217; problem. The concept of being too important to fail should have no place in a market economy.&#8221;</p>
<p>Asked if there could be a repeat of the financial crisis, Mr King said: &#8220;Yes. The problem is still there. The search for yield goes on. Imbalances are beginning to grow again.&#8221;</p>
<p>Mr King suggested that the culture of short-term profits and bonuses could be to blame for the issues. Traditional manufacturing industries had a more &#8220;moral&#8221; way of operating.</p>
<p>&#8220;They care deeply about their workforce, about their customers and, above all, are proud of their products,&#8221; he said.</p>
<p>&#8220;(With the banks) there isn&#8217;t that sense of longer-term relationships. There&#8217;s a different attitude towards customers. Small and medium firms really notice this: they miss the people they know.</p>
<p>&#8220;If it&#8217;s possible (for financial services firms) to make money out of gullible or unsuspecting customers, particularly institutional customers, that is perfectly acceptable.&#8221;</p>
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