The FSA was ‘seduced' by the long boom of the late 20th and early 21st centuries, says Lord Turner.
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...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes