The Chairman of the Treasury Select Committee, Andrew Tyrie MP, said a review into the Bank of England's performance during the financial crisis is "still needed".
If the Governor thought that a review into the Bank’s performance during the crisis had been necessary, it would already have been completed. I am surprised that this was not done some time ago. Both the FSA and the Treasury have produced reports into their own performance.
The Governor suggests that such a review would be undertaken if specifically requested. The Treasury Select Committee has repeatedly called for one, whilst recognising that the best opportunity to do such work - after Lehman, the period in which the FSA produced their report - may now have passed.
The review is still needed. As the Governor himself said, it is important for us all to learn from the mistakes that have been made.
Labour MP criticises King for claiming he could not stop crash
Labour MP Andy Love, a Treasury Select Committee member, said: "This is a very unwise intervention by the Governor...He has been less than forthcoming about the Bank of England's mistakes in the run-up to the crash when it had a very clear responsibility for financial stability.
"And he is compromising his position by once again backing George Osborne's economic plan, even though we now know it has comprehensively failed and pushed Britain back into recession.
"His attempt to blame Britain's lack of growth for the last year and a half on world energy and food prices going up, rather than the Government's reckless policies, will not wash when countries like America have seen their economies grow strongly."
Sir Mervyn King admitted the Bank had made mistakes and should have "shouted from the rooftops" that banks had been allowed to borrow and lend too much. And it should have done more to convince the Government to recapitalise banks sooner.
There had been a "failure of imagination" to appreciate that some of the biggest banks, such as Royal Bank of Scotland and Lloyds, could need a bail-out, partly because there had been no boom or period of high inflation to suggest a crash, he claimed.