The TSC’s criticisms were not reserved solely to Barclays, which has already responded by replacing the chairman and promising to change the old culture of risk-taking and “pushing the limits”.
The committee attacked the FSA for failing “to appreciate the significance of rumours relating to the rigging of Libor”. The watchdog is conducting an investigation into its shortcomings, the findings of which the TSC said should be made public.
The Bank of England, too, came under scrutiny. “The evidence suggests that the Bank was aware of the incentive for banks to behave dishonestly, yet did not think that dishonesty was occurring. Nor did it appear to have asked the FSA to check,” the TSC said. “This suggests a naivety. They were certainly relatively inactive.”
Who, precisely, is going to do this extra regulation better and how?
\”Our peeps with more money\” is not an answer.
My own suggestion is that the place definitely needs different regulation. That\’s not the same as \”more\” of course.
But I would be interested in hearing from the more regulation crowd. Given that the regulators failed last time around what makes you think it will be any different in the future?