Mervyn King speaks on Eurozone risk

In his BBC Today Programme lecture, given last night, Bank of England Governor Sir Mervyn King endorsed David Cameron’s recent warnings that the UK remains highly vulnerable to fall-out from the Eurozone crisis, which he described as”far from over”. He argued that the risk of Eurozone failure was another factor supporting further reform of the UK’s banking system; “… we’ve been pushing for banks to pay out less to their shareholders and employees and instead retain profits as a cushion against possible losses.”