Judge slams ‘heedless’ bank lending

A High Court judge has stressed the need for urgent reform and regulation of banks and the markets following “heedless lending behaviour” that has caused “fathomless damage” to the economy.

“Banks should never be allowed the power to distort a national economy; experience has shown that they cannot be expected to act solely in the national interest,” Mr Justice Peter Charleton said.

It was obvious there must be “guidance, and more” provided to banks as to when to loan money and, “more essentially”, banking must become honest and prudent,” the judge said.