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Bye Bye Fsa! Totally Uselss Regulator Being Scrapped

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many will be glad to see the back of it

it failed to do its job: to regulate banking & financial industry including mortgages

to top it, it rewarded it staff with huge bonuses for this failure!!!

unbelivable but true!!!!!!!

a thorough investigation & lenghty jail terms with fines is what is needed here.

U.K. Scraps FSA, Reversing System Set Up by Brown

June 17 (Bloomberg) -- Chancellor of the Exchequer George Osborne said he will abolish the Financial Services Authority and give most of its power to the Bank of England, undoing the regulatory system set up by Gordon Brown in 1997.

In the most sweeping changes to financial regulation since then, the watchdog will be wound down and replaced by three bodies over the next two years, the chancellor said. A Prudential Regulatory Authority will be created as a subsidiary of the central bank. Osborne will also set up a Financial Policy Committee at the bank and establish a consumer protection and markets agency.

Osborne, whose Conservative Party took power after the May 6 election, is delivering on a promise made almost a year ago to shake up the way the U.K.’s banks and markets are policed. He’s blamed the system established by former Labour Prime Minister Brown for failing to prevent a financial crisis that saddled taxpayers with liabilities of as much as 1.4 trillion pounds ($2.1 trillion) and plunged the economy into the worst recession since World War II.

“At the heart of the crisis was a rapid and unsustainable increase in debt that our macroeconomic and regulatory system utterly failed to identify let alone prevent,” Osborne told bankers at his first Mansion House dinner in London’s financial district last night.

Northern Rock

Brown’s government had to nationalize Northern Rock Plc, the first U.K. casualty of the credit crunch, in February 2008. The lender nearly collapsed in 2007 after it had to seek emergency funding from the central bank and then suffered a run on its deposits. The government also had to take controlling stakes in Royal Bank of Scotland Group Plc and Lloyds Banking Group Plc.

With the economy emerging from recession, Britain now faces the deepest spending cuts since the 1970s to tackle the record budget deficit, overshadowing prospects for recovery.

“Many in the City had felt that giving the Bank of England responsibility for macro-prudential regulation would be a positive step, but there will be disappointment that the government has decided to launch such a radical overhaul of the regulatory system at this particularly difficult time in the economic cycle,” said Nathan Willmott, a lawyer at Berwin Leighton Paisner in London.

Osborne’s plan scraps Brown’s tripartite system of regulation -- in which the central bank, FSA and Treasury shared responsibilities -- and places most of the onus on Bank of England Governor Mervyn King. Legislation to replace the FSA will be in place by 2012, Osborne said.

‘Clearer, More Effective’

Angela Knight, the chief executive of the British Bankers’ Association, a lobby group, said she welcomed steps to make the system “clearer and more effective” and pledged to support the government during the transition.

The FSA’s chief executive, Hector Sants, 54, will stay on at the authority while it is wound down and will take up new roles on the bodies that replace it, becoming a deputy governor of the central bank.

Executive power over financial supervision will go to the Financial Policy Committee at the central bank, which will operate in a similar way to its rate-setting monetary policy panel. The new committee “will have the tools and the responsibility to look across the economy at the macro issues that may threaten economic and financial stability and the tools to take effective action in response,” Osborne said.

http://www.bloomberg.com/apps/news?pid=20601010&sid=aFIGUjZk6WhE

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The Bankrupt of England pissed on their financial stability remit. They ignored all warnings about debt and carried on - end result bank runs - top work and now they say it is all the FSA's fault - -total bull.

Their remit involved setting interest rates to match their (or their political controllers) version of the economy, whilst in the meantime the economy got hosed by asset inflation and left. There will be no receovery from this as there is no reason to bring anything back to this overpriced debt hole.

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many will be glad to see the back of it

it failed to do its job: to regulate banking & financial industry including mortgages

to top it, it rewarded it staff with huge bonuses for this failure!!!

unbelivable but true!!!!!!!

a thorough investigation & lenghty jail terms with fines is what is needed here.

FSA bagoshite this is fantastic news

The ammount of useless paperwork required to process a mortgage is staggering.

Will raise my glass of vino tonight and toast the new regulators who will make a complete balls up of it as well.

how does it go, same as it ever was

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Or........

New useless regulator being formed.

Correct. "Prudential" LOL

As to the BoE running things? One word. Barings. (this is the history as farce repeat :D:D)

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It will be the same people rebranded with a new name, new logo, new office and new salary but with the same ability.

Hector has now decamped to the Bankrupt of England.

Still, pile all the shit in the same place and it means you only have to look at one place, ignore what they say and watch what they do.

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Two words. "Regulatory capture."

So it makes not one jot of difference.

The BoE were every bit if as clueless during the so called "boom." BoE's remit is to protect its own (and its mates, the banks). The rest of the country can burn for the BoE cares (and already has).

Oh message to George Osborne. Break up and sell off ALL the assets of the Corporation of London. Then that will have less money to buy lobbyists, politicians etc.. then take apart the BoE pension fund.

Edited by SirStirlingSlumlord

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Guest sillybear2

Serves them right, they refused to investigate blatant mortgage fraud and looked the other way, things became even worse after they took over mortgage regulation from the CML.

Good riddance, they were bloody useless, nobody will miss them.

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at least hector and merv will ahev something in common to talk about when they sit there having dinner.their 'how did we miss the biggest asset bubble in the hsitory of the world' conversations will be listende to by generations of future legislators desperate to avoid the ignominy they will eventually face.

Merv didn't

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what did he do about it?

when did he make a speech highlighting the dangers of said asset bubble?

exactly.

a supposedly "independent" BoE should have been acting more quickly to combact economic down turn.

sadly he's just another blunt tool in Brown's / Bankster plan

now he's interest rates are still held historic low!

why?

to support a housing market! what housing market!

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exactly.

a supposedly "independent" BoE should have been acting more quickly to combact economic down turn.

sadly he's just another blunt tool in Brown's / Bankster plan

now he's interest rates are still held historic low!

why?

to support a housing market! what housing market!

The housing market that is shrinking in volume of transactions due to prices and forced inflation. The one where the builders are slowing down their production rate. The one where small developers are going to be loked out due to no aess to development land (garden grabbing having been squashed). The one where even the shit-box builders are paying £60K a pop to build some of the crappiest, shoddiest and expensive matchbox homes that have ever been foisted on a population in the world.

This is a roaring success for the Bankrupt of England, these shylocks know of no other way.

UK - hollowed out toy town.

Edited by OnlyMe

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  • 152 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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