‘Worse to come’ says US expert

A former International Monetary Fund chief has warned that there is worse to come from the global financial crisis – and that it could claim a major American bank. Professor Kenneth Rogoff told a conference in Singapore that the US, particularly, "is not out of the woods".

"We’re not just going to see mid-sized banks go under in the next few months, we’re going to see a whopper, we’re going to see a big one - one of the big investment banks or big banks," the professor said.

Rogoff also criticised the Federal Reserve for having slashed US interest rates. "Cutting interest rates is going to lead to a lot of inflation in the next few years in the United States," he said.