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King Says Global Debt May Contain Seeds of Next Financial Crisis

  • Ex-BOE governor says Fed shouldn’t be hamstrung in emergencies
  • Says regulators may already be concerned about new derivatives
Mervyn King

Mervyn King

Photographer: Christopher Goodney/Bloomberg

Former Bank of England Governor Mervyn King says a buildup of debt needs to be more closely monitored to ensure it doesn’t spark the next financial crisis.

“The areas of weakness in the current system are really focused on the amount of debt that exists, not just in the U.S. and U.K. but across the world,” he said on Bloomberg Radio on Wednesday. “Debt in the private sector relative to GDP is higher now than it was in 2007, and of course public debt is even higher still.”