May be as bad as early 90s

The City watchdog, the Financial Services Authority, has told the UK’s banks to make sure they are strong enough to withstand serious losses on mortgages and other lending for the next two or three years.

In an exclusive interview with me, the FSA’s chief executive, Hector Sants, was asked whether the difficulties for banks could be as bad as they were in the early 1990’s and whether losses on lending would continue to be a problem for up to three years.

In an exclusive interview with me, the FSA’s chief executive, Hector Sants, was asked whether the difficulties for banks could be as bad as they were in the early 1990’s and whether losses on lending would continue to be a problem for up to three years.