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FCA warns Trump over ‘too big to fail’ rules

FCA warns of the damage to co-operation among global regulators if the Trump administration unwinds the regime for failing banks

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In an interview with the Financial Times in Washington, FCA chief executive Andrew Bailey says there is a risk to the confidence international regulators would have in the US if it scrapped its system for handling the collapse of banks.

Last week President Trump signed an order which paves the way to overhauling the fund set up as part of the Dodd-Frank act to help regulators wind up failing banks.

Bailey says: “We would have to say do we really think there is a resolution mechanism in there that we would have confidence . . . has got what it needs to be effective?

“Unfortunately, if you can’t answer that question in the affirmative then you are undermining . . . the consensus in terms of direction of travel that has emerged in recent years. It is quite fundamental.”

He adds if the issue of “too big to fail” firms was “disrupted badly, and I hope it won’t, I really hope it won’t, that would be the element that I think would be problematic internationally.”

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. “FCA warns Trump over ‘too big to fail’ rules”

    Gosh I’ll bet The Donald is quaking in his shoes. (Or is this just another rather ‘off’ headline?)

  2. Donald Trump practically promotes failure – his mantra being if you haven’t been bankrupt you haven’t tried hard enough!

  3. Too Big To Fail ! is that not what they said about Banks ? RBS, Barclays, HSBC and LloydsTSB and Insurance companies Scottish Amicable Scottish Equitable, Equitable Life ( currently becoming a phoenix ) little Scottish Widow and the latest merger between Standard Life and Aberdeen Asset Management ( where two heads are better than one ? old Chinese proverb). Then under the Regulator, there was the General Accident and the, Commercial Union – and Norwich’s own “union”, Prudential Pearl and Co Op insurance – removing competition. Now we see passive funds which offer no consumer protection – merely a computerized US system which does not take into account Client Outcomes ( A breach in FCA Rules – of treating customers fairly – or at all ! ). Too big to fail has bene shown they are not too big to fail – but it is the incompetents who run the incontinent people ( known as “the sheep ” ) – who keep these poor performing financial institutions as the pyramid selling schemes they are ! This results in a monopoly – which has remained in place unchanged for decades or centuries – with no prospects of new products or better consumer services form these little inexcuseable – pirates for power.

  4. @Ian Lees

    Very well said!!

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