Tories eye up Sants as Bank deputy

13 November 2009 | By Lee Jones

The Conservative Party is reportedly interested in making FSA chief executive Hector Sants Bank of England deputy governor.

According to the Financial Times, the Tories may offer Sants a senior role at the Bank of England, which would be the main financial regulator should the party move into Goverment next spring.

Sants recently warned against the Tory plans of dissolving the FSA and creating a new consumer champion to work alongside the Bank. He told Bloomberg on Monday: “I strongly believe that dividing responsibility for enforcement activity would invite a fragmentation of approaches and a turf war between the different bodies involved.”

The newspaper says that the opposition has been courting Sants for weeks and were irritated over this week’s criticism of the plan. One source told the FT that it “had to stop”.

Other possible Tory targets could be FSA managing director of risk Sally Dewar or former FSA managing director and current Lloyds Banking Group chief risk officer Carol Sergeant, says the FT.

Readers' comments (29)

James | 13 Nov 2009 9:37 am
I know this is Friday 13th but this feels more like April 1st.

But really, how utterly,sickeningly predictable. Another best of British banking farce.
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Anonymous | 13 Nov 2009 9:40 am
It Seems that the Tories will just have the FSA under a new name! Remember the PIA and LAUTRO?
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Evan Owen | 13 Nov 2009 9:46 am
Tory problems are:

(a) they are not in power
(b) they may never be in power
(c) they may never have sufficent majority to push things through
(d) 'buying' loyalty when the concept is flawed smacks of desperation
(e) they should fix what we have and stop tinkering.
(f) the man in the street believes politics is bust

I feel better for getting that off my chest!
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Richard | 13 Nov 2009 9:49 am
I think the Conservatives are doing their very best to loose the next election, with stupid ideas like this.
P*ss up in a brewery comes to mind!
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Ewart Matthias | 13 Nov 2009 9:50 am
So let's get this right, according to the Tories the FSA has failed and should be dissolved and that those who are leading the FSA (the reason for its failure?) are to be offered jobs at the new regulator? They just don't get it do they? Pathetic.
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Sir Malcs | 13 Nov 2009 9:52 am
As a long time admirer of Sants' unique brand of enforcement I have to say this is a bold move by the Tories (although I always had Big Hec down as a Lib Dem myself).

If a turf war was to ensue I certainly wouldn't want to be on the side fighting against Hector.
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Evan Owen | 13 Nov 2009 9:53 am
How much will all the Tory proposals cost the regulated firms?

£100m?

£200m?

How mauch damage will (have) the proposals caused to markets?

Do IFAs have any idea what lies in store for them when they are regulated by a 'Consumer Protection Agency' which has no other advice channel upon which to vent that very public spleen?

The Tories should listen to Hector Sants, he knows what he is talking about as far as this issue is concerned.
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Anonymous | 13 Nov 2009 9:56 am
Brilliant this is the man who (wasn't) on watch when the Banks were running amok lending willy nilly and getting themselves and now us into dire finacial straits.He was in charge asLehmans went under and did absolutely nothing...until it was too late and then with hindsight blames everyone else but himself!How do these people get these jobs?The FSA's role in ,or lack of it in leading a sensible regulatory regime is shameful, but now those idiot politicians want him at the BoE?It would be funny if it was not so serious.IFA's be warned,lobby your MP before its too late.
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Anonymous | 13 Nov 2009 10:05 am
This doesn't smack of jobs for the boys does it?
All that will happen is that the FSA will be rebranded into another inept body that acts with impunity, punishing others for errors while ignoring it's own failings and giving themselves large bonuses for cocking up the financial system. They are being paid too much for what they do and are not accountable for their own failings. So, just like any other government agency then.
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Martin O'Connell | 13 Nov 2009 10:07 am
I'd be surprised if anyone is surprised by this. Any lingering hope that a change of government would herald the abolition of the RDR must surely have gone now.
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