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Fsa Warns Of Final Act Of Market Turmoil

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The Financial Services Authority is calling on regulated firms to adapt their businesses in the light of what he branded the "final act" of market turmoil.

In a speech this morning, at the FSA annual public meeting in London, FSA chief executive Hector Sants once again referred to the end of “easy money.”

He told the audience that the final act of the credit crunch - what he calls the 'new normal' - will mean consumers and businesses managers will face new challenges.

Sants says: “The new normal will require firms to adapt their business models, consumers their spending patterns and consequently generate new challenges and change for us.

I have already previously observed that the era of “easy money” is gone for some and all of us must take that into account, whether we are managers of financial institutions, borrowers or savers.”

He adds that the FSA’s objective - maintaining a fair and orderly market that consumers can have confidence in - will stay the same regardless of the market.

Although he expressed regret over the Northern Rock crisis, he sought to remind delegates of the regulator's achievements.

Earlier in his speech, Sants told delegates that the supervisory programme the regulator launched, in response to its failures over the supervision of Northern Rock, will push the FSA over its budget for 2008/2009.

He warned this will have consequences for next year.

He adds: "I do, however, believe that this necessary investment is supported by the firms that will benefit from the resultant higher quality supervision."

http://www.mortgagestrategy.co.uk/cgi-bin/...h=401&f=402

We live in interesting times folks.

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This looks like a transcript of the same speech...

http://www.mondovisione.com/index.cfm?sect...il&id=76062

Conclusion

In conclusion, we must acknowledge that the last year has been a difficult one for the FSA, overshadowed as it was by the events surrounding Northern Rock. But, it was also a year in which we achieved much and learnt lessons that I believe will ensure the FSA establishes itself as a strong and enduring institution.

As to the future? It is clear that the current year has as many challenges for us as the last. We have seen several acts playing out in the markets. The first act, last summer, was a liquidity crisis. In the autumn we moved into the second act where the concern has been about capital. We are now anticipating the third act, which is likely to feature a downturn in the real economy. The good news is that we are moving through the acts. But the risks in each are material and neither we nor our firms can afford to relax.

Inevitably we will enter the final act - the ‘new normal’. The new normal will require firms to adapt their business models, consumers their spending patterns and consequently generate new challenges and change for us. I have already previously observed that the era of “easy money” is gone for some come and all of us must take that into account, whether we are managers of financial institutions, borrowers or savers.

The underlying objective of the FSA will, however, not change. We remain committed to delivering a quality market place: a market place that is orderly and fair; a market place where borrowers and savers can make long-term financial commitments with confidence; a market place which works for everybody.

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I was just thinking to myself this morning that i think the 'Credit Crunch' is over.

This is how it will be for the forseeable future. No more easy debt.

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Although he expressed regret over the Northern Rock crisis, he sought to remind delegates of the regulator's achievements.

http://www.mortgagestrategy.co.uk/cgi-bin/...h=401&f=402

:blink::lol: :angry:

I think I have the emoticons in the right order?

Bally unbelievable!

Please tell me you added this for dramatic effect OLD FTB?? ---- 'achievements' ....... No, I'm dreaming it.

EDIT:- excess of 'e' in one word

Edited by Laura

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Funny how the new "normal" looks a lot like the old "normal", innit? I really wish they'd go the whole hog and refer to the last eight or so years as "abnormal".

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:blink::lol: :angry:

I think I have the emoticons in the right order?

Bally unbelievable!

Please tell me you added this for dramatic effect OLD FTB?? ---- 'achievements' ....... No, I'm dreaming it.

EDIT:- excess of 'e' in one word

I can assure you i had no hand in the text of his speech.

And i don't know who the hell he thinks he is fooling by trying to big up the FSA's (lack of) "acheivements".

Who is he trying to impress?

:lol:

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Open letter to the FSA:

Here's your lesson in 2 videos:

1 - http://video.google.co.uk/videoplay?docid=...75&hl=en-GB

2 - http://video.news.sky.com/skynews/video/?&...270508_0900.flv

Just watch those - and it's ALL THERE!!!!!!!

Dear Eric,

We totally refute any allegations made in either of those 2 online videos.

Furthermore we can robustly defend our record of acheivements as a Financial regulatory service

yours sincerely

FSA

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Funny how the new "normal" looks a lot like the old "normal", innit? I really wish they'd go the whole hog and refer to the last eight or so years as "abnormal".

I find the idea of "new <anything>" to be somewhat comical.

Is fuchsia is the new black?

How about New Labour - does it work?

Perhaps we should coin the buzzword nunormal?

Edited by A.steve

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Dear Eric,

We totally refute any allegations made in either of those 2 online videos.

Furthermore we can robustly defend our record of acheivements as a Financial regulatory service

yours sincerely

FSA

Apparently they made some weak excuse about it being illegal to comment on Equitable Life, then they were asked to explain it, changed their story to saying it wasn't illegal but 'inappropriate' to discuss the issue and then got heckled by a guy who lost his savings in the disaster. Smooth.

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I find the idea of "new <anything>" to be somewhat comical.

Is fuchsia is the new black?

How about New Labour - does it work?

Perhaps we should coin the buzzword nunormal?

I think that was taken up by NuParadigm inc.

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  • 396 Brexit, House prices and Summer 2020

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      • down 5% +
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