And this, to inspire confidence, just in...
http://www.dailymail.co.uk/news/article-1155562/Brown-told-question-banks-risky-practices-says-City-watchdog.htmlBrown told us not to question banks on risky practices, says City watchdog
By JOE MURPHY and PAUL WAUGH
Gordon Brown helped fuel Britain's banking crisis by pressuring City watchdogs into 'light-touch regulation', MPs were told today.
In damning evidence to the Treasury select committee, Financial Services Authority chairman Lord Turner said there was clear 'political' pressure not to question the business models of banks such as Northern Rock, HBOS and Bradford and Bingley.
The phrase 'light-touch regulation' was one often used by Mr Brown when chancellor and his then City minister Ed Balls.
Lord Turner also admitted that his predecessors at the FSA had failed to spot the wider systemic risks of complicated financial instruments and the housing and lending boom.
Lord Turner pledged the City watchdog would unveil a 'revolution' next month in the way it monitors banks, their bonuses and business models.
He added that the FSA was focused on specific processes within banks rather than their overall lending policies.
Lord Turner told the committee that he had recently gone through the FSA's detailed reports on HBOS.
'We had a philosophy of how to do regulation which was founded on organisational structures, processes, systems, whether reporting lines were correct.
'It fairly overtly said that it was not the function of a regulator to cast questions over the overall business strategy of an institution, You may find that surprising. I find that surprising.'
Lord Turner was accused by MPs of deflecting criticism from the FSA itself and committee chairman John McFall said his remarks had raised serious questions about the FSA's independence.
Lord Turner stressed that economists and finance ministers had got it wrong in failing to spot the dangers in the lending boom.
But he added that if the FSA had tried to step in it risked being accused by politicians of trying to 'prevent the democratisation of home ownership'.
In spite of the disastrous state to which the banking system has been consigned, the FSA also announced today that it would be paying out £21 million in bonuses to staff. Chief executive Hector Sants told the committee that each employee would get between £7,000 and £8,000.
Earlier, Chancellor Alistair Darling urged banks to stop haggling and sign up to the latest £500 billion bail-out plan.
The Treasury is offering to underwrite toxic assets amounting to about £250 billion each at RBS and Lloyds and in return, they are expected to give a pledge to increase lending to families and businesses by an extra £40 billion.
