Queen quizzes Central Bank

LONDON - Reuters

EPA Photo

Britain’s Queen Elizabeth put central bankers on the spot when she quizzed them about the errors that led to the financial crisis in a rare public intervention during a visit to the Bank of England on Dec. 13.

She asked whether complacency was a factor and if the financial watchdog lacked teeth, touching on a sensitive debate that has raged since the near collapse of the banking system and triggering widespread attention in the British media. Bank of England staff attempted to answer her inquiry during her visit, giving a technical explanation that prompted the queen to explore the subject further.

“I suppose in money terms it is very difficult foreseeing [things]. But people had got a bit ... lax?” she said, before agreeing with an official that the real problem could have been “complacency.” She asked whether the bank regulator at the time lacked the powers it needed. “It was really quite new, wasn’t it? But it didn’t have any teeth or something?” she asked in comments captured in television footage of the visit.

 The central bank team giving the Queen an account of the crisis was introduced to the monarch by an official as “some of the staff who hopefully will spot the next one coming.”