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Garnier: Banks scared of offending FSA in TSC evidence

Banks are scared of speaking the truth when giving evidence to the Treasury select committee for fear of offending the FSA, according to TSC member Mark Garnier.

Speaking at a PanaceaIFA event at M&G Investments offices in London this morning, Conservative MP Garnier said evidence given by the banks did not always tally with what was said in private.

He was responding to Panacea chief executive Derek Bradley who asked Garnier if he thought those who gave evidence to the committee were ever economical with the truth.

Garnier said: “Yes absolutely. This is something that certainly comes up in evidence when we have had chairmen and women of the banks.”

“We ask them: ‘Do you think the FSA are a good organisation? They says: ‘Yes they are very helpful, they are very wise in what they do.’ But in private it is a completely different story.”

He added: “It is not a great conspiracy but these companies, to a certain extent, have commercial interests and do they want to be beaten up by the FSA? I do not think they do.”


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There are 9 comments at the moment, we would love to hear your opinion too.

  1. When Mr Sants said that people should be scared of the power of the FSA, he obviously was not speaking in jest.

    Its all very well MPs bemoaning the regulator being unaccountable to Parliament, they gave them/it the automony in the first place, in effect granting a licence to terrorise without reproach, a situation which has no rightfull place in any civilised democracy.

    Gadaffi himself would be proud of this way of doing business.

  2. I think that mr Garnier should get the banks to “take care” and mabe they should go to a laboritoir to come up with better options

  3. If that is the effect they have on big banks imagine what it is to a sole trader.
    We need Parliament to bring the regulator under control. They should not be a law unto themselves.
    How can a so called democracy allow one unelected organisation to wield so much power with no accountability.
    The first poster is correct any oppressive regime would admire the fsa.

  4. When the people fear government there is tyranny, when government fears the people there is liberty.

    The FSA is out of control.

    The number of ‘anon’ postings confirm this.

  5. The very fact that all the above feel the need to post anonymously tells its own sad story.

    Viva las Revolution

  6. Julian Stevens 7th March 2011 at 7:51 pm

    Unfortunately, te government has no intention of bringing the FSA or its successor under any sort of cntrol, having already announced that the FCA will be independent of government and accountable only to its own board, i.e. accountable to no one but itself. The nightmare looks set to continue. The only escape from this tyranny is passporting.

    At least Mark Garnier has been made aware of the FSA’s unilateral total opt-out from the Statutory Code of Practice for Regulators, so a question or two may be raised about that at Wednesday’s hearing (3 p.m. Wednesday afternoon, so I’m informed).

  7. Power corrupts and absolute power corrupts absolutely.

    When will someone do something about this monster?

    The cost of this organisation is out of all proportion to the value it adds to ‘consumer protection’.

    I wonder; Do they ever actually talk to ‘consumers’ to obtain feedback?

    In all the time the FSA has existed not one single client has asked,’Are you regulated by the FSA?’

    The average high street customer has no idea who or what they are or do.

  8. Not only the banks are scared, the MPs received hundreds of complaints about the RDR, yet only a small percentage of these wrote officially to the treasury.

    It is a great concern that few people think they can speak up to a government elected body without risking repercussions.

  9. On these comments pages there is the opportunity to report a comment as “Unsuitable or offensive?”
    Please could Money Marketing also add the option of “Agree” with a posting and show the running tally, just like the Daily Telegraph does on its blogs?
    It would then save some repetitive comments while indicating which view have the most support.

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