Turner says FSA 'seduced' by long boom years

Speaking at a Parliamentary Select Committee hearing today, the FSA chairman says regulators and banks became complacent due to an uninterrupted decade of economic growth, and believed it would never end. The hearing, tackling the issue of whether banks should have been considered ‘too big to fail', heard there can be no guarantees that tighter regulation might prevent a future crisis. Turner says the size of UK banks is not important, believing a multitude of smaller banks could still have become over-exuberant when lending. High capital liquidity requirements, and macro-prudentia...