Brexit & EconomyPoliticsMPs deliver damning credit crunch report card

MPs deliver damning credit crunch report card

MPs have delivered a damning report on FSA and BoE’s handling of the liquidity crisis

Following the loss of billions of pounds in the global credit crisis, a
damning report by Britain’s MPs urges the country’s financial regulator and its
central bank to develop a better way of warning banks and investors of high
risks.

In the report, the
Commons
Treasury Select Committee
criticises the
Financial Services
Authority
(FSA) and the
Bank of England
(BoE) for failing to ensure financial companies were prepared for the worldwide
closure of credit markets, The Times reports. The government must
respond to the charges within two months.

‘It is clear that many market participants failed to heed warnings about a
serious underpricing of risk and the potential for impaired liquidity in
financial markets in the mistaken belief that the good times would go on and
on,’ John McFall, committe chairman, said:

The committee will recommend that, in future, the regulator and the bank
should write a letter to financial companies, highlighting two or three key
risks. The MPs believe the two institutions should then seek confirmation the
companies have considered the risks and publish a commentary on the responses.

Further reading:

FSA to consider Rock lessons

Ex-FSA chief set to face crunch questions

Read
story in the The Times

Related Articles

5 key takeaways from Theresa May’s Florence speech

Brexit 5 key takeaways from Theresa May’s Florence speech

3w Alia Shoaib, Reporter
UK at risk of Brexit talent brain-drain

People Practice UK at risk of Brexit talent brain-drain

2m Alia Shoaib, Reporter
Brexit essentials: this week's round-up

Politics Brexit essentials: this week's round-up

2m Alia Shoaib, Reporter
Less than a third of UK businesses have made formal Brexit plans

Politics Less than a third of UK businesses have made formal Brexit plans

3m Alia Shoaib, Reporter
Nicky Morgan elected Chair of the Treasury Committee

Politics Nicky Morgan elected Chair of the Treasury Committee

3m Alia Shoaib, Reporter
Government publishes post-Brexit customs arrangements policy paper

Politics Government publishes post-Brexit customs arrangements policy paper

2m Alia Shoaib, Reporter
Italy grants first successful non-dom status application to former UK non-dom

Personal Tax Italy grants first successful non-dom status application to former UK non-dom

3m Emma Smith, Managing Editor
Increased government spending partly offset by high tax revenue

Governance Increased government spending partly offset by high tax revenue

3m Alia Shoaib, Reporter