FSA Chairman Reviews Re-visited

In his new proposed reviews to prevent a future occurence similar to the current financial crisis, Financial Services Authority chairman Lord Turner said that the implementation of a new system will need to have regulation of ’shadow’ banking institutions that pose systemic risks like hedge funds. Other recommendations included setting up a new regulatory body to supervise cross-border banking and stronger national supervisory authority over foreign banks. He added: “A global market economy remains the best means of delivering global prosperity: it requires a global banking system focused on serving the needs of businesses and households, not in taking risks for quick return.”

Posted by Shue on April 14th, 2009 :: Filed under FSA

FSA Chairman Publishes Review

Financial Services Authority(FSA) chairman, Lord Adair Turner unveiled his review of the financial crisis in which he explains the the causes of the current credit crunch. In the review, he also outlines proposals that will help prevent similar economic meltdowns from happening in the future. In the review, Lord Turner identified 3 main causes of the credit crunch as: the financial innovation of little social value, macro-economic imbalances and significant deficiencies in bank capital and liquidity regulations. His proposals included regulatory changes that would create a banking system that would be very different from the one of the last decade.