Speaking to Money Marketing after his keynote speech at the National Association of Pension Funds’ investment conference in Edinburgh last week, Bolton said the FSA was best placed to identify problems in the banking system because it had access to the most information about banks’ business models.
He said: “This is a crisis that has had many ingredients but when it comes to the UK banks, the person who had the best information and whose job it was to regulate them was the regulator. I think the most blame has to go with the regulator.”
FSA chief executive Hector Sants, the next speaker on stage, rejected the claim and said that global regulatory architecture was the principal culprit rather than the regulator.
Sants said: “We could have done a better job delivering local supervision but I honestly do not think now we are this far down the track of the crisis that the national supervisory process is the principal driver of the problem. The principal driver of the problem is that the global regulatory architecture and rules failed.”