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Bankers are warned over risk taking

Updated on 02 July 2009

Source PA News

Chancellor of the Exchequer Alistair Darling has promised tighter regulation of the financial system as he warned that bankers who return to excessive risk-taking will be "brought back to Earth".

Mr Darling indicated that next week's banking reform White Paper will include new powers for the Bank of England and Financial Services Authority to prevent a repeat of last autumn's meltdown.

Amid signs of the return of the bonus culture in the City of London, he warned that it would be "disastrous" if bankers got the idea that the crisis was now over and they could go back to their old ways.

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