Tuesday, Apr 28, 2009
Just checking you no longer writing those dodgy mortgages
Bloomberg: FSA’s Light Touch Turns to Iron Fist as More Bankers Questioned
The regulator, criticized by lawmakers for not doing enough to prevent the financial crisis, has broken with its past approach, promising more intrusive regulation and warning that people “should be frightened” of the FSA. “The FSA is becoming nastier,” said Sara George, a former FSA prosecutor who is now a regulatory lawyer at Allen & Overy LLP. Better late than never I guess.
Posted by mountain goat @ 11:14 AM (405 views) Add Comment
1 Comment
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1. mountain goat said...
As authorities realise they have been asleep and take tougher approaches it is possible that this needs to go a lot further still. John Kemp of Reuters writes that now that so much of the toxic debt has landed on the books of Central banks "It is time to consider whether the volume and composition of credit should be an explicit target for government policy, alongside output, inflation, employment and income distribution."
My view is that it would have been simpler to let the banks collapse, let market forces rule. However, now that we the taxpayer are saddled with their bad debt, we also have to make sure banks don't keep dumping their toxic debt on the taxpayer in the future.