A View From Middle England - Conservative with a slight libertarian touch - For Christian charity and traditional belief - Free Enterprise NOT Covert Corporatism

Tuesday, October 09, 2007

FSA? Fully Signed-up A......s!!

The FSA should be the regulatory body for examining the business practices of the financial industry of the UK. However, it appears to be just like any other quango. Make sure the jobs of the staff are safe and satisfactory and then maybe enquire about the moneymakers and what they are getting up to.

Michael Fallon is a Conservative MP on the Treasury Select Committee. He is not best pleased with the present antics in the City. He asked a question to Hector Sants, the Chief Executive of the FSA, who was before the committee. He said, "You are dealing with a bank (Northern Rock) whose lending has quadrupled from £25bn to £100bn - it was taking one in five mortgages - and you were not doing a full assessment for three years." Whereupon Sants replied, "I think there are lessons to be learned here with regard to our supervisory practice and I do think we need to look at our engagement with this company."

Not exactly a fulsome response. Indeed it epitomises the problem with people like Sants. They take on the role of running these regulatory outfits, but when push comes to shove and they get asked questions about their performance, it has all the hallmarks of dismal failure to be pro-active in avoiding such financial disasters.

The FSA should be the watchdog organisation we want it to be, not like some rottweiler with dodgy teeth and gum disease!


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