From the BBC:
The bosses of failed regulators could face having two years' pay clawed back from them, the chairman of the Financial Services Authority (FSA) has said.
Lord Turner told the BBC's business editor, Robert Peston, that he was attracted to imposing such a sanction on himself. He said the rule - which is already in place in the US - would discourage regulators from allowing banks from taking excessive risks.
His comments come after Vince Cable scored some cheap political points by attacking the FSA for not releasing its report on Royal Bank of Scotland (RBS). Mr Cable has written to Lord Turner to demand details of the investigation into how everything went according to plan at RBS, which the government bailed out in October 2008, even there was no good economic reason to do so. The government underwrote 80% of the losses in the lender purely to try and keep the land price and credit bubbles inflated.
Lord Turner told our business editor that he was open to the idea of publishing such reports in the future, but that its study on RBS was difficult to publish it didn't actually exist.
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7 comments:
A sense of wonderment as I read the bit about The government underwrote 80% of the losses in the lender purely to try and keep the land price and credit bubbles inflated. - allegedly on a BBC website! - gave way to a sense of "Wait a mo'.......
I should, of course, have known better. Nice try, though.
FT, you didn't already twig at "he was attracted to imposing such a sanction on himself"?
What can I tell you? Mea culpa... Maybe I'm just so used to seeing and reading shite from BBC sources - and R Peston in particular - that my critical sensor was caught all unawares and took a moment or two to catch up............
Bailed out? Bailed out?
How could they say such a thing?
"Assisted through some temporary liquidity difficulties by an investment of government funds, that is likely to be repaid handsomely in due course" is the normal formula, isn't it?
FT, my finest hour was doing an Arlene Philips/Alesha Dixon switcheroo, that really got the crowd going.
AC, true, but in this instance, the BBC actually said 'bail out', that wasn't my re-write. PS, in the official, official version, they "invest government funds" in order to "reap a reward for the taxpayer", they never "risk taxpayers' money" in order to "reap a reward for the Home-Owner-Ist éilte".
Well, I wouldn't stop at clawing back two years salary. They should suffer the same losses that they arbitrarily visit on the regulated, i.e. loss of business, loss of home and loss of pension.
Personally I'd just hand round the piano wire to my peer group and let them get on with it.
"Pay your taxes - kill a bureaucrat"
A great way to ensure that the quality of financial regulators in the future is even more feeble than in the past.
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