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Turner warns on dangers over lack of radicalism

FSA chairman Lord Turner has warned MPs he is worried the FSA, Government and international regulators could fail to be radical enough in overhauling the financial regulatory and supervisory system.

Speaking at a Treasury Select Committee evidence session this morning, Turner said there is a danger that the positive signs in the economy will lead to regulators “drawing back” on the degree of radicalism needed to prevent a future economic crisis on this scale.

Turner said: “Because we are now seeing some signs of positive things, some green shoots out there, because of those positive signs and the exhaustion level of driving through the changes required, there could be some drawing back from the degree of radicalism we require, particularly given the fact that some of it requires international agreement and getting international agreement is immensely tiring.

“So I think there is a real danger that we do not seize the opportunity of this crisis to make sure that we make changes radical enough to ensure that we are not sitting here in ten or 15 years time so I do have that concern.

“We need to draw breath and think about it and make sure we are being radical enough and make sure we don’t get satisfied with what we’ve done so far. I do have that worry internationally that we could fail to be radical enough in response to what occurred.”

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  1. Julian Stevens 23rd June 2009 at 1:55 pm

    Turner warns on dangers over lack of radicalism
    The most pressing priority is a root and branch radical reform of the FSA. Somebody needs to make the FSA lay off the IFA sector (which has 97% customer satisfaction and only 3% of all complaints referred to the FOS) and instead work out who from now in is going to regulate PROPERLY the source of almost all of the country’s current economic woes. The biggest problem with the FSA is its total misdirection (not to mention profligate misuse) of resources, fine examples being the commissioning of endless outside consultancy exercises and the payment of lavish bonuses for failure. But then IFA’s have always been an easier target than the banks.

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