Sir Mervyn King has called for an end to bankers being "demonised" for their role in the financial crash, insisting the problem was with the system rather than individuals.
The outgoing governor of the Bank of England said there was a failure to adequately regulate the financial sector and society had given "too much status" to those in the City.
In an interview with the Murnaghan programme on Sky News, Sir Mervyn said bankers were only part of the problem which led to the meltdown in the financial services sector.
He also warned that one of the government's plans to reboot the housing market, through its Help To Buy scheme, was unsustainable in the long run.
In one of his last interviews before stepping down as governor, Sir Mervyn gave this assessment of the financial meltdown:
But Sir Mervyn also raised concerns about one of the government's plans to stimulate a recovery, by boosting the housing market.
He warned that the Chancellor's Help to Buy scheme, which will see the Government guarantee up to 15% of a mortgage on properties worth up to £600,000.
The scheme, which starts in January 2014, is due to run for three years and Sir Mervyn warned it must not be allowed to become permanent.
Sir Mervyn's concerns about Help to Buy echo those of the Treasury Select Committee, which reported on the Budget last month.
The committee warned the Government will come under "immense" pressure to extend Help to Buy in three years.