King says bank break-ups may be answer

LONDON: Bank of England Governor Mervyn King stepped up his call for governments to tackle the dangers posed by banks that are "too important to fail", saying new capital rules won't shield taxpayers from funding any future bailouts.

"The massive support extended to the banking sector around the world, while necessary to avert economic disaster, has created possibly the biggest moral hazard in history," he said in a speech in Edinburgh.

He indicated that one solution could be to split up banks and separate riskier activities from more stable businesses such as taking deposits.