By Natasha Brereton LONDON -(Dow Jones)- Bank of England Governor Mervyn King said Tuesday that heightened regulation can’t prevent the financial speculation that results in bank failures, and called for a serious review of the structure of the banking sector whose goal would be to eliminate institutions that are too important to fail. In a speech to business people in Scotland, King championed the idea of separating banks’ utility functions as a means of minimizing the government’s effective subsidy of risky activities and reducing the U.K.’s reliance on a small number of very big banks. Turning briefly to the economy, he noted that there was likely to be “significant” fiscal tightening in the years ahead, and stressed the need to boost broad money growth, but gave no clear indication on whether he would favor extending the bank’s bond buying policy. “The sheer creative imagination ...

How much was the global economic crisis made possible by a savings glut in emerging countries? While popular sentiment is to lambast securitization, bankers and even capitalism per se, a more nuanced view of the matter (and one widely embraced by economists of varying ideologies) embraces the appreciable role of emerging economies in inflating the world’s asset prices (though to be fair, said economies were awash in private capital flows from more developed nations).  And while emerging countries were stung just as hard (if not harder, due to capital outflows) as developed ones from the crisis, their long-term fundamental health is not questioned.  Among other changes which will be evident in international finance’s new paradigm, notes Mohamed El-Erian, chief executive and co-chief investment officer of Pimco, the bond investment manager, is that “multiple growth engines, largely from the developing world, will replace the single engine of growth

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