Remind me, who set up the City regulatory framework

Lord Turner, the head of the FSA has called for major changes to the way Banks operate. Giving the Economist lecture he said that parts of the regulatory system were "seriously deficient" and he recommended that banks should be forced to build up capital during good times, so they could more easily weather an economic downturn.

Sounds like good advice, it's certainly advice that Gordon Brown could usefully have followed by setting aside money during the recent engineered boom. Hold on haven't the Conservatives been making this point for some weeks now and been derided for it by Gordon Brown and the BBC?


One further point, if the FSA "failed to piece together the jigsaw puzzle" of risks which included a large UK current account deficit, rapid credit extension and house price rises, then shouldn't some of the blame lie at the feet of the man who designed the tripartite City regulatory system, Mr Gordon Brown. He swept away the old system that worked and replaced it with something modern and shiny and not fit for purpose.