Wednesday, February 25, 2009
FSA – “there was political pressure to be less intrusive when looking into banking organisations”
The Financial Services Authority's (FSA) "philosophy" of regulation which saw several banks fail was flawed, the chairman of the regulator admitted today (25 February). Giving evidence at the Treasury Select Committee this afternoon, Adair Turner, the chairman of the FSA said while there was competent execution, "in retrospect" the style of regulation was not.Lord Turner said that prior to the banking crisis, there had been political pressure to be less intrusive when looking into banking organisations. As a result, he said a style of regulation had developed where it was the FSA's role to look at institutions structures and systems as opposed to probing its business strategy.