View all newsletters
Have the short, sharp Spear's newsletter delivered to your inbox each week
  1. Wealth
June 17, 2010

To Catch a Banker

By Spear's

It’s the old solution of using criminals to catch criminals. Unfortunately, the criminals in the banks were just too high-paid.

No doubt heavyweight financial critic and Spear’s economics editor will weigh in (in his inimitable style) on Boy George’s abolition of the FSA and boosting of the Bank of England, but a few thoughts herewith nonetheless.

One of the key problems with the FSA was not that it was separate from the Bank of England, or that no-one had macro-prudential control of credit expansion, but that it could not attract as employees those who knew what was going on.


 
Worse than Rupert Murdoch, who is always one step behind the internet (‘Oooh, MySpace – let’s buy that’), the FSA was several steps behind the clever types in the banks who were dicing and slicing mortgages like Marco Pierre White in a rage. If you can’t understand what’s going on, how can you regulate it?

This is because working for the FSA was not the limitless jackpot for halfwits that the years 05-06 were in the City, where the rising tide carried even those in the most impractical and badly-made boats. If the FSA had been able to pay massive salaries, with bonuses for catching the bonus-led, they would have attracted the right people.

It’s the old solution of using criminals to catch criminals. Unfortunately, the criminals in the banks were just too high-paid.

Content from our partners
Why investors should consider investing in nature
HSBC Global Private Banking: Revisiting your wealth plan as uncertainty abounds
Proposed non-dom changes put HNW global mobility in the spotlight

Select and enter your email address The short, sharp email newsletter from Spear’s
  • Business owner/co-owner
  • CEO
  • COO
  • CFO
  • CTO
  • Chairperson
  • Non-Exec Director
  • Other C-Suite
  • Managing Director
  • President/Partner
  • Senior Executive/SVP or Corporate VP or equivalent
  • Director or equivalent
  • Group or Senior Manager
  • Head of Department/Function
  • Manager
  • Non-manager
  • Retired
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
Thank you

Thanks for subscribing.

Websites in our network