5 Senior FSA officials fall on their sword over Northern Rock.
I have just been reliably informed that 5 senior persons within the FSA have resigned over the Northern Rock debacle.
Finally we seem to have some movement with people taking repsonsibility for their actions, or lack of it. I just hope that the FSA 5 are not just fall guys, who have been promised from the powers that be a nice little deal and a move sidewards into a cushy governmental post.
What Trumpo would like to see is a public enquiry into this situation, and all parties involved named and shamed. For the FSA to come public with 5 resignations states to me that the s**t is about to hit the fan!
Your passionate and honest opinions together with suggestions of what the regulator or Government should do next would be extremely illumintaing for the industry, more than a thousand of you got involved last week, lets go for 2,000 this week!!
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March 10th, 2008 at 10:09 am
I will be astonished if anyone of any rank within the FSA resigns without a lump sum and without blemish on their file. They should leave public service immediately and have to find their way in life within the private sector. Having said that when you consider how Patricial Hewitt has prospered after her disastrous time as Secretary of State for Health it makes me wonder if there is any way those at the top will ever have to answer for their actions.
March 10th, 2008 at 10:33 am
If they are senior FSA officials should they not be named and shamed. Also a what level where they involved with Northern Rock. If they are high level FSA officials when will Mr Darling give his resignation?
March 10th, 2008 at 11:29 am
We need from the ulimate person responsible who could give the following instruction and why no action was taken.
a) Allow a purchase to take place subject to the usual searches.
b) Allow the bank to be put into recievership and thence liquidated.
c) AS soon as practicle to put the Bank into Public ownershiip.
A Public Inquiry, conducted by an independant person who must have no connection with Government or any Quango, is essential. (but most unlikely)
March 10th, 2008 at 12:10 pm
Rumour also has it that the FSA is calling all CEO’s of mutuals on a weekly basis putting them on “liquidity watch”. The upshot of this is that we have seen two lenders close to new business - Amber and Scarborough SSM with more to fall over from the pressure from the FSA - The FSA can little afford another Northern Rock debacle as can the government! Darling’s Kite mark (what happened to CAT standards ?)and gold plating is window dressing. This is a high stakes game that neither the FSA or Gov’t can afford to lose - The markets and the electorate will decide sooner or later
March 10th, 2008 at 1:01 pm
So some six months after the NR debacle started 5 ’senior persons’ at the FSA have had a sudden attack of conscience! I don’t think we need ask ‘did they jump or were they pushed?’ The answer must be that they are being put forward as a sacrifice by the FSA trying to show that it is getting a grip! If so then we need to know what severance package are they getting and who will pay for it? Perhaps any severance payments should come out of the salaries of the top 5 people at the FSA!
March 10th, 2008 at 1:58 pm
We do not know who the 5 are - they could be high paid cleaners who probably do a good job because I believe there is a lot of verbal diarrhoea to clear up every day down there in Canary Wharf- IT SHOULD BE THE CAPTAIN OF THE SHIP THAT TAKES THE REPRIMAND -
I have just fallen foul of The F.O.S - after 35 years in the financial services arena-they have just made me A NO LONGER A FIT AND PROPER PERSON TO TRADE - WHY? I WOULD NOT/COULD NOT COMPLETE A PENSION MISS SELLING CLAIM AGAINST ME BECAUSE I FEEL THE OMBUDSMAN HAVE GOT IT WRONG-
SHOULD NOT THE TOP PEOPLE TO BLAME FOR THE NORTHERN ROCK
DEBACLE NOT BE GIVER THE SAME AWARD AS MYSELF - NO LONGER A FIT AND PROPER PERSON
March 12th, 2008 at 11:35 am
It’s easy to bash the FSA and in truth sometimes they deserve it and are their own worst enemies. But I have to admit to feeling sorry for them.
They are the Government fall guys. We had self regulation. Then these clowns who call themselves the Government came along and invented the FSA. A very cunning stroke. If things went well (fat chance) they could point to canary Wharf and say – see we’re doing a good job.
If the mess hit the fan those mendacious so and so’s in Westminster could distance themselves by saying ‘It ain’t us – it’s the Independent Regulator’.
And all the while it costs the Treasury nowt – we pay!
They (The FSA) have been given a mandate which is far too large. The idea of regulating a tiddler like me and the Nat West in the same organisation is nonsense. They then have the onus of ‘educating the public’. That means educating those that the State System has failed. Why is that their responsibility and why should we pay for it. It should be the Education Dept that does this.
By now I’m sure you get the drift – The FSA certainly has faults, but the villain of the piece is down the Thames at Westminster. They (in theory) are answerable. Let’s see what happens at the next election
March 12th, 2008 at 12:31 pm
Harry Katz - A very balanced view, but we must not forget that the people at the top of the FSA are being paid several £100,000’s of pounds salaries and even more in pensions and benefits, so dont feel to sorry for them. People should be paid on performance!!!!!
I bet you the average salary at canary wharf is considerably higher than the national average ?
March 14th, 2008 at 10:52 am
There is only one organisation more scandalously useless than the FSA, and that is the FoS. Imagine my delight when I recieved the forms to renew my CCL license and the fee had gone up from about £30? to £285! This largely because of a levy for the FoS for some sort of CCJ fund. Why should I pay for problems with peoples CCJs?
I have had a number of clients have recourse to the FoS, and every one of them has given up after a year or two of delays and burocracy. They have to get on with their lives.
When I met Alistair Darling before New Labour were elected (he was spokesmamn on Insurance matters) he assured me that if elected he would tear up the Financial Services Act. Time he did!
It is a pity that all our ruling politicians are so comprehensively useless. If you watch the parliamentry sessions and the select comittees on television you will be reassured to see that there are many capable and knowledgable MPs in the house. It appears that none of these has the arrogance to seek Cabinet office.
On the subject or arrogance, it is worth remembering that the Northern Rock problems are entirely due to the Mad Woman. She did away with the Building Societies Act. Before that the Financial industry was regulated by the Board of Trade, the Inland Revenue and Occupational Pensions Board. These three were obliged to inspect financial organisations every quarter (which they didn’t always do, notably in the case of Mirror Group pensions).
How do we get capable people to represent us? I have been voting for more than 40 years, and my vote has never counted because I have never voted for anyone who has suceeded in being elected!