Prevention of future financial collapse difficult

London

ALLEGATIONS that a single UK day trader caused the "flash crash" five years ago indicate that regulators and central bankers will find it difficult to prevent a potential future global financial collapse.

Indeed, growing numbers of financial commentators, including the Bank for International Settlements (BIS), warn that quantitative easing (QE) of the US Federal Reserve, European Central Bank (ECB), Bank of England (BOE) and Bank of Japan (BOJ) have raised the risks of another major financial crash. Central bankers' spin is that they are applying "macro-prudential regulation" to counter the risk of a systemic financial slump. Critics have their doubts.