The FSA failed to pick up on the risks being taken by the banks in recent
years, its chairman has admitted.
Interviewed on the Andrew Marr Show, Lord Turner said regulators around the
world had failed to spot the ‘large systemic risk’ that the banking system was
operating in by 2004.
‘We didn’t focus enough on that – the FSA, the Bank of England, the Treasury,
the Fed and OCC [Office of the Comptroller of the Currency] in the US didn’t
focus enough on these issues. We have got to get that right in the future,’ said
He said it was a ‘legitimate criticism’ that the bank had focused to much on
banks’ processes without spotting the greater risk created by their credit
strategy, reported The Guardian.
The FSA’s banking review, to be published on 18 March, would include ‘major
changes’ in the amount of capital held by a bank.
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Further powers are being sought by HMRC, but it is ‘failing’ to use those it already has, such as Conduct Notices, says RPC
HMRC breaches client confidentiality; and partner profits fall at EY. These stories and more discussed in Friday Afternoon Live