Lord Turner, FSA Chairman, has slammed elements of investment banking for "cynical greed" while demanding the "purge" of purged" of its "culture of cynical entitlement" where this arises. His speech highlighted the "radical change" in the FSA following criticisms of its role in the financial crisis, specifically its "woefully deficient rules on bank capital and liquidity", "deficient and under-resourced approach to prudential supervision" and the "‘underlap’ between the Bank of England and the FSA, an absence of systemic analysis and macro-prudential policy tools". However, he states that "Beginning in spring 2008, the FSA has therefore implemented radical change in its approach to prudential supervision – with more resources, better trained, and better focused on key issues. That reform has continued over the last year" and looks forward to the new financial regulatory environment due to formally take place in 2013.
Published: 5 July, 2012