I TOLD you so! One former Southampton academic has described how he warned of the current global financial crisis 15 years ago.

Richard Dale, a retired professor of international banking at Southampton University’s school of management predicted today’s banking crisis back in 1993.

That’s when he gave a dire warning that if banks took too many risks with depositors’ money, there would be a “largescale crisis engulfing both banks and securities markets internationally.”

His detailed study, entitled International Banking Deregulation: The Great Banking Experiment, warned that the banks’ increasing involvement in securities markets such as stocks and shares, would lead to financial meltdown.

He also warned against the repeal of the US Glass-Steagall Act nine years ago. That Act had been passed in the wake of the 1929 stock market crash.

This Act sought to separate investment and commercial banking activities.

Professor Dale said: “The Act was repealed in 1999 and eight years later the banking industry is facing a meltdown due to its risk exposures in securities markets.

“As far as I am aware, this is the only serious academic study that anticipated the current financial disaster in the context of a fatally flawed financial market structure.”

He has spoken out as talks continue worldwide to find a solution for the beleaguered financial sector following the collapse of the American housing market last summer.

This led to a knock-on impact worldwide as banks suddenly found themselves short of cash and the credit crunch began.