FSA picks former Lloyds exec to head retail

Jon Pain, a former managing director of Lloyds TSB’s mortgage lender arm
Cheltenham & Gloucester, is joining the
Financial Services
(FSA) at a critical time when high street banks are struggling
with falling profits and higher bad debt charges because of the US sub-prime

Pain’s duties includes some of FSA’s most demanding tasks, involving
supervising all companies which deal directly with consumers such as all the
main high street banks, insurers, building societies and about 17,000 companies
involved in providing mortgage advice and insurance broking, Financial

Pain replaces Clive Briault, who left the regulator by ‘mutual agreement’ in
April and who is said to have shouldered much of the blame for the watchdog’s
poor supervision of Northern Rock.

The departure of Briault this year came only days before the FSA published a
damning internal critique of its failure to adequately to oversee Northern Rock
and Pain’s key task will be to help rebuild FSA’s credibility.

Further reading:

King urges ‘billions’ for depositor fund

the Financial Times story

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