'Too big to fail' era is over, Bank of England claims

THE era of "too big to fail" banks going bust and being bailed out by the public is over, the Bank of England claimed today, while warning that three major lenders still have shortcomings.

- Simon English and Mark Banham

Lloyds, Standard Chartered and HSBC were told to improve their so-called resolution plans, a somewhat public rebuke. All three said they would do so.

Banks around the world went bust in the wake of the 2008 credit crunch, beginning with Lehman Brothers and Bear Stearns on Wall Street.

The contagion spread. In the UK, Royal Bank of Scotland and Lloyds had to be bailed out at the cost of tens of billions of pounds each.

All banks took contributions from the taxpayer to stay afloat, if only indirectly.