Dire warning over eurozone crisis

The governor of the Bank of England has issued a grim warning about the impact of the eurozone crisis on Britain.

Sir Mervyn King said the situation was extraordinarily serious and he urged banks to brace themselves for a potential eurozone collapse.

Sir Mervyn and other financial regulators are now urging banks to set aside more money to protect themselves, and if necessary they say bankers' bonuses should be slashed.

Simon Gompertz reports.