I agree, we should follow the American Way, but not this current lot. Back in the 1930s the Americans learnt the hard way, as usual, following the '29 Crash & in 1933 passed the Glass-Steagall Act. Amongst other things it prohibited bank holding companies from owning other financial companies. This part of the act was repealed in 1999, so no coincidence there then.

It used to be said that Clearing Banks lived off their deposits whilst Merchant Banks live by their wits. Part of today's problems emminate from Clearing Banks, excluding Lloyds TSB, having large Investment (Merchant) Banking subsidiaries which put at risk depositors' monies. So let us have a differentiation between the two, so that both shareholders & depositors know what they are putting their money into.

DB, Eglwyswrw, Pembrokeshire

Is Ms Cavendish frightened of negative equity per chance as the British property bubble is bursting just like all the others are?

Paul, Coventry,

I totally agree Ms Cavendish. The Fed spotted the Bear Sterns problem, found a buyer and funded a solution over the weekend and before the Tokyo opening Sunday night. Compare that to the sorry Northen Rock affair, dragged on for over six months and with it the reputation of Britain as an international banking sector. It used to be fashionable to talk about the advantanges of the FSA's "low touch" regulatory approach vs the hard nosed US one...No more...

miguel, london,

If the UK government taxed us less and wasted less on crazy ministerial initiatives which never achieve their objectives and cost huge amounts of OUR money, there would be no crisis, as growth would continue to be strong as the individuals who had control of THEIR OWN money would spend it efficiently and keep growth going. In the USA they believe this philosopy.
That's why it is such a dynamic country and well able to get out of this crisis. In the UK we roll along as one of the highest taxed and regulated countries on earth.

David Nammory, Liverpool,

The word you are looking for but didn't use, Mrs. Cavendish, is blackmail.

The essence of your article is that publicly funded central banks should bail out irresponsible profiteers because of the consequences if they do not.

Well ... I agree that that's what they should do at this moment, but I see no reason to crow about it like you do.

For let's be clear about this: the only reason the US, and because of it the whole world, is facing a slump is because your high-payed self-regulated colleagues acted like a bunch of irresponsible thugs.

I really do believe that a few criminal investigations are in order, followed by a fresh round of tight regulation for the financial sector.

Golodh, London, UK

@KK, Manchester, UK
"How can a couple of phone calls ease the credit freeze where injecting billions of dollars into the system has failed?"
Because almost all Banks in the western world are now members of the World Banking Cartel who take their orders from the Bank for International Settlements in Basel, Switzerland, a private bank owned and controlled by the world's central banks. When this bank gives orders, other banks obey. So, only one call is actually necessary. To find out how banks really function, see the internet film, "The Money Masters" on Google. It explains exactly what is happening and why, and predicted this situation back in 1995 when it was created.

victor compton, Cherbourg, France

So called Bankers should not benefit unfairly from devious instruments which are invisible and ununderstandable to normal investors and depositors. This has clearly been the case. Having said that, the dithering in UK compared to US is appalling. Don't blame BoE, blame the ultra ditherer - Gordon Brown. He calls the shots in the end. As all say, confidence is key and Brown inspires NONE. He should go back to his Manse and manage affairs within his capability. If he/we had listened to people like Moulton we would not be in this situation. Cash under the mattress? Could be going that way.

Gordon, Weybridge, UK

The problems in the market have originated in the USA and as ever when they have a problem they export it. Mervyn King should force the banks to go back to sensible banking practice. The present system is an extension of a casino which pays bonus dividends to the biggest gambler but when it all comes crashing down the public pay via the BOE. My question to Mervyn King is why do the banks need this injection is it to pay staff bonuses in April no funds should be made available without a declaration from the banks and finance house that they will not pay any bonuses until April 2011 and then only on 2009 trading figures.

DLO, Benfleet, UK

i can't believe the attitude of this woman. to think that the taxpayer should continuously bail out banks that have profited from the same taxpayers in every way possible, just so they can continue doing so, is grotesque.

and then to argue that to tax the rich is a bad thing! if speculation and the crossing of fingers has overvalued major resources then its perfecty fine for the 'correction' to occur. richard is right, this is an opportunity to make the system work better and more safely, but first you must remove and replace the broken bits.

this aricle reeks of agenda, not journalism

Fiendo, Belfast,

i wouldn't call it exactly decisiveness , its more like panic my friend. if you look at the oil prices and the inflation there is absolutely no room for rate cuts and if they lowered the rates its just panic.
in the wake of such inflationary pressures lowering interest rates in economical suicide .

ebbi britt, valencia,