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Carney sets out tough new rules for markets

By John-Paul Ford Rojas

Bank of England governor Mark Carney said the "age of irresponsibility" was over as he set out plans for new financial market rules in the wake of a series of City scandals.

Mr Carney said that unchecked markets were "prone to instability, excess and abuse", adding that poor infrastructure had lit "a powder keg in UK markets triggering the worst recession in our lifetime".

He called for tough new sanctions with longer prison sentences for those who break the rules.

He was speaking as the Bank set out the final report of its Fair and Effective Markets Review which has produced a series of recommendations to reform a system whose deficiencies allowed misconduct to take place.

Mr Carney said: "For the best in the business, this won't be new. This is just how you run your business. But for others, who free ride on your reputations: the age of irresponsibility is over."

He said failings in market structures, standards and incentives skewed to short-term returns, coupled with a "culture of impunity" in parts of the market had contributed to an "ethical drift".

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