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By Tony Grew - 26th May 2011
The business secretary has warned that the UK's financial model could face a crisis unless it is completely overhauled.
In an interview with the New Statesman, Vince Cable expressed his concerns about remaining levels of personal debt and over-reliance on the housing market.
"We really haven't engaged with the real depths and seriousness of the financial crash," he said.
"You've got bits and pieces of regulation being put in place, but it's very piecemeal.
"The structure of banks are being addressed in the UK but nowhere else.
"There is a bit happening in terms of complex derivatives, in terms of clearing house arrangements, though it's a bit limited.
"I was very impressed with that Warren Buffett metaphor that asset-backed mortgage lending was the atomic bomb, and that there are hydrogen bombs out there.
"I just don't think that collectively governments have got to grips with this at all."
Cable also told the New Statesman that he intends to stand at the next general election, which will be held in 2015 according to the coalition agreement.
"I'd like to go on," he said.
"Deng Xiaoping is a real model . . . who knows?"
Dods Parliamentary Communications Ltd
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