Bank 'did not understand crisis'

The Bank of England deputy governor Sir John Gieve has said interest rates could not have prevented the credit crunch.

In an interview with the BBC's Panorama programme, he said that the Bank knew "crazy borrowing" was taking place and the price of houses and other assets was rising unsustainably.

Jane Hadden reports.

Panorama: The Year Britain's Bubble Burst, BBC1 Monday 22nd December at 2030 GMT