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Topics: FSA| Bank of England| CPMA (Consumer Protection and Markets Authority)| PRA (Prudential Regulatory Authority)| Hector Sants
FSA chief executive Hector Sants is thought to be uncomfortable with Governor Mervyn King’s hardline stance on the banking system which helped hurl Britain into recesssion.
High up sources in the FSA say soon-to-be deputy Governor of the Bank Sants is worried after a slew of outspoken comments about the banking sector from King, according to reports.
In the past few weeks, King has told reporter and MPs he is "surprised" the public are not angrier than they are with the banking sector.
He has criticised Britain's bank bonus culture, promised to crackdown on financial institutions making money out of "gullible" customers, and accused the sector of only being concerned with profits.
A source close to Sants at the FSA says King's comments directly contradict the regulator's aim to promote the City overseas. He says King's confrontational stance will be difficult to maintain, according to City AM.
The Governor has been unpopular with the City for some time. A senior banker told the Evening Standard: "Mervyn goes on about the crisis as though he had nothing to do with it. He was Governor of the BoE for God's sake."
King's unpopularity is thought to stem partly from his background. He has spent most of his life in academia, as a professor of economics at Birmingham, Harvard and the LSE.
Sants on the other hand is a former investment banker who has worked at Credit Suisse and UBS.
There is growing concern over the ability of the BoE and FSA to work together.
Over the coming months the FSA's responsibilities will be split, with some being taken forward by the new Consumer Protection and Markets Authority and others by the Prudential Regulatory Authority, which will answer to the BoE.
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| Comment | Sants pressures King to go easy on the banks |
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Truth will out
So now we have it. The head banana of the FSA (who came from a banking backround) favours banks. Now there's a surprise for IFAs!
Posted by: Harry Katz
GRACE
A lack of grace may yet save a lack of face
Posted by: Jefroc
Go Easy on Banks
This from the buffoon who during his term in charge of the FSA (banks regulator) suggested that there was no banking crisis and that a nominal amount of funding would be required. That nominal amount is now in excess of £100billion, with many people losing there homes, income and will to live. What does he get appointed as Deputy Governor, I ask you. Having watched his performance the other day, I thought he demonstrated his contempt by being poorly prepared and unable to string any response together without frequent erm,erm, erm. He also clearly stated that the FSA answers to no one they make the rules, not even the government or the people, arrogant twerp. He should look to Libya to see what eventually happens to dictators.
Posted by: Steve Holloway
when it suits
Hector please go and go now !! in your own words " I always try to be mild mannered" now it seems you are worried the banks are getting bad comments made about them: my heart bleeds for you !! You intend to keep all your investment bankin mates in big bonuses and high powered jobs with your private club (FSA). If bulls*** or missing the bleeding obvoius were olympic sports you would be our best chance of a gold medal!!! see you in 2012
Posted by: DH
Quite right by 'lol'
So Sants wants King to keep quiet and avoid passing embarrasment in his direction. In the dizzy months of the banking crisis it is obvious Sants WAS the problem He was (and still is) over rated Out of his depth (then and now) Why can we simply not have him 'dismissed' by Osborne .....but of course Osborne does not care either. Will we ever have anyone with the strength of conviction to grasp the nettle and oust the trouble-makers
Posted by: Roger
True colours
This response from Hector would seem to confirm what many have known for some time The banks have been getting away with murder for years and hardly a squeak out of the regulator Now this revelation, something is very fishy at Canary Towers
Posted by: Duncan Carter
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Not Guilty
"FSA chief executive Hector Sants is thought to be uncomfortable with Governor Mervyn King’s hardline stance on the banking system which helped hurl Britain into recesssion". No surprise since sants was at the helm when the proverbial hit the fan. Reflects badly on him and as we saw at the tsc meeting, he does not take kindly to personal criticism.
Posted by: lol