OECD blames banks for financial crisis

A ‘gobsmacking’ weakness in the way banks are regulated led to the financial crisis the Organisation for Economic Cooperation and Development (OECD) has said. The group blasted regulatory financial frameworks as ‘very poor’ saying they not only failed to prevent the financial crisis, but contributed to it. The OECD also blamed a failure in corporate governance, the bank bonus culture, credit-rating agencies, and a lack of diligence by institutional investors for exacerbating the crisis. More than £2,000 billion has been wiped off the stock market value of banks since the crisis started.